Malaysian palm climbs on firmer US soyoil, but profit-taking caps gains
03/06/2026 (New Straits Times), Kuala Lumpur - Malaysian palm oil futures climbed more than one per cent on Wednesday as trading resumed after a long holiday weekend, buoyed by stronger Chicago soyoil although profit-taking tempered the upside.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange gained RM66, or 1.46 per cent, to RM4,601 (US$1,156.03) a metric ton by the midday break. The contract eased 0.04 per cent in the previous session.
The market had a post-holiday rally, largely driven by stronger rival oilseeds, particularly Chicago soybean oil, a Kuala Lumpur-based trader said, adding that profit-taking limited the gains though.
Dalian's most-active soyoil contract fell 0.16 per cent, while its palm oil contract shed 0.33 per cent. Soyoil prices on the Chicago Board of Trade were up 0.59 per cent.
Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Oil prices rose, extending gains from the previous session, as hostilities in the Middle East erupted anew with Iran firing missiles at Kuwait and Bahrain, while diplomatic talks between Iran and the US showed little progress.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit, palm's currency of trade, weakened 0.43 per cent against the dollar, making the commodity cheaper for buyers holding foreign currencies.
India's palm oil imports rose modestly in May from a four-month low in the previous month, but stayed below average, as refiners turned to rival soyoil after palm's price advantage over competing oils narrowed, five dealers said.
Indonesia exported 7.72 million tons of crude and refined palm oil in the first four months of 2026, up 20.38 per cent from a year earlier, statistics bureau data showed. Palm oil may fall to RM4,501 per ton, following its failure to break a resistance at RM4,583, Reuters technical analyst Wang Tao said.