Palm oil futures rise on better demand, likely lower June production
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange gained 66 ringgit, or 1.66%, to 4,034 ringgit a metric ton by the midday break
02/07/2025 (Business Standard) - Malaysian palm oil futures rose on Wednesday, snapping two straight sessions of losses, supported by improving demand, soyoil rally and the possibility of lower production in June.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange gained 66 ringgit, or 1.66 per cent, to 4,034 ringgit a metric ton by the midday break.
"Overall market sentiment has improved and demand has returned to normalcy. With our preliminary assessment on lower production in June and the soyoil rally, all helped palm prices to remain competitive," said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.
Dalian's most-active soyoil contract rose 0.35 per cent, while its palm oil contract gained 0.79 per cent. Soyoil prices on the Chicago Board of Trade (CBOT) was 0.71 per cent higher.
Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market.
Exports of Malaysian palm oil products for June rose 4.3 per cent month-on-month, according to independent inspection company AmSpec Agri Malaysia, while according to Intertek Testing Services, they grew 4.7 per cent.