Palm trades sideways as stronger ringgit counters support from Dalian rivals
04/02/2026 (New Straits Times), Jakarta - Malaysian palm oil futures traded sideways in early deals on Wednesday, as a weaker Chicago soyoil and a stronger ringgit countered support from gains in Dalian vegetable oils.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange was down RM12, or 0.28 per cent, at RM4,203 (US$1,071.92) a metric ton, as of 0238 GMT. The contract traded in a range of RM4,201 to RM4,255.
FUNDAMENTALS
Dalian's most-active soyoil contract gained 0.25 per cent, while its palm oil contract rose 0.4 per cent. Soyoil prices on the Chicago Board of Trade were down 0.31 per cent.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
The Malaysian ringgit, the contract currency of trade, strengthened 0.23 per cent against the US dollar, making palm oil more expensive for foreign currency holders.
Exports of Malaysian palm oil products were expected to have risen between 14.9 per cent and 17.9 per cent month-on-month in January, according to data from inspection company AmSpec Agri Malaysia and cargo surveyor Intertek Testing Services.
India's palm oil imports surged 51 per cent in January to a four-month high, as the tropical oil's discount to rival soyoil prompted refiners to ramp up purchases while cutting soyoil imports to a 19-month low, according to five dealers.
Oil prices rose on Wednesday, extending the previous day's gains, after the US shot down an Iranian drone and armed Iranian boats approached a US-flagged vessel in the Strait of Hormuz, rekindling fears of an escalation in tension between Washington and Tehran.
Palm oil may test support at RM4,201 per ton, a break below which may trigger a fall into the RM4,115 to RM4,158 range, according to Reuters technical analyst Wang Tao.
MARKET NEWS
Asian stocks were on shaky ground on Wednesday, following steep losses in US and European equities on fears that advancements in artificial intelligence could supplant traditional software.