Malaysian palm oil futures inched higher on Wednesday. NSTP/DANIAL SAAD

KUALA LUMPUR: Malaysian palm oil futures inched higher on Wednesday, tracking stronger rival Dalian oils and crude oil prices, though weaker Chicago soyoil capped the gains.

The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange gained 17 ringgit, or 0.4 per cent, to 4,271 ringgit (US$1,008.98) a metric ton in early trade. The contract rose 0.28 per cent in the previous session.

Dalian’s most-active soyoil contract rose 0.83 per cent, while its palm oil contract added 0.52 per cent. Soyoil prices on the Chicago Board of Trade were down 0.19 per cent.

Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.

Oil prices ticked up in early trading after rising more than 3 per cent in the previous session as potential supply shortages came into focus after US President Donald Trump gave Moscow an abbreviated deadline toward ending the war in Ukraine.

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

European Union soybean imports for the 2025/26 season that began in July reached 736,447 million metric tons by July 27, down 37 per cent from the same period a year earlier while palm oil imports fell by 53 per cent to 118,863 million tons, the European Commission data showed.

Indian importers have bought a record 150,000 metric tons of soyoil from China in rare purchases, as a supply glut prompted Chinese crushers to sell at a discount to India’s traditional suppliers from South America, four trade sources said.

The ringgit, palm’s currency of trade, weakened 0.05 per cent against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.

Asian stocks rose modestly on Wednesday, with investors cautious after trade talks between the US and China ended without any substantive agreement and ahead of the Federal Reserve’s policy announcement.

Source: New Straits Times