Palm oil rises on stronger crude, Chicago soyoil
25/06/2025 (New Straits Times), Kuala Lumpur - Malaysian palm oil futures inched higher on Wednesday, snapping losses from the previous session, supported by stronger Chicago soyoil and firmer crude oil.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange gained RM11, or 0.28 per cent, to RM3,994 (US$943.32) a metric ton in early trade.
Dalian's most-active soyoil contract fell 0.75 per cent, while its palm oil contract lost 0.6 per cent. Soyoil prices on the Chicago Board of Trade (CBOT) rose 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 edged higher, finding some respite after plummeting in the last two sessions, as investors assessed the stability of a ceasefire between Iran and Israel.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit, palm's currency of trade, strengthened 0.14 per cent against the dollar, making the commodity slightly more expensive for buyers holding foreign currencies.
European Union soybean imports in the 2024-25 season that began last July reached 13.79 million metric tons by June 22, compared with year-ago 12.89 million tons, data published by the European Commission showed.
The EU palm oil imports for the same period stood at 2.76 million tons compared with 41 million tons a year earlier.
Indonesia's palm oil inventory rose 50 per cent month-on-month by April 30 to 3.04 million metric tons, the highest since May 2024, following a decline in exports, data from Indonesia's palm oil association showed.
Palm oil may break support of RM3,978 per metric ton and fall towards RM3,938, Reuters technical analyst Wang Tao said.
Asian stocks stabilised on Wednesday as crude oil hovered near multi-week lows as a ceasefire between Israel and Iran buoyed sentiment, even as hostilities threatened to flare up again.