Business Recorder (19/06/2025) - JAKARTA: Malaysian palm oil futures closed higher on Wednesday, supported by gains in rival soyoil in Dalian and Chicago markets and a weaker ringgit.

The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange gained 37 ringgit, or 0.91%, to 4,101 ringgit ($965.40) a metric ton at the close.

A Kuala Lumpur-based trader said that the market is in a range-bound mode, but with a positive bias due to the strength in rival oils and the ringgit’s weakness. Soyoil on the Chicago Board of Trade (CBOT) was up 0.2%. Dalian’s most active soyoil contract gained 1.46% and its palm oil contract rose 0.73%.

Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market. Oil prices fell on Wednesday, after a gain of 4% in the previous session, as markets weighed up the chance of supply disruptions from the Iran-Israel conflict and as they ponder a direct US involvement.

Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.

Malaysian ringgit, the palm’s contract currency of trade, eased 0.12% against the US dollar, making ringgit-denominated goods more attractive for foreign currency holders. Cargo surveyor Intertek Testing Services said exports of Malaysian palm oil products for June 1-15 rose 26.3%, compared to May 1-15, while according to independent inspection company AmSpec Agri Malaysia, the shipments rose 17.8%.

Read more at https://www.brecorder.com/news/40368461/malaysian-palm-oil-futures-rise-tracking-rival-soyoil