Palm oil trades in tight range as weaker rivals counter firm crude oil
24/09/2025 (Reuters), Kuala Lumpur - Malaysian palm oil futures traded in a tight range in early deals on Wednesday, as weaker rival edible oils countered support from firmer crude oil prices.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange gained 7 ringgit, or 0.16 per cent, to 4,350 ringgit (US$1,036.45) a metric ton in early trade. The contract fell 2.25 per cent in the previous session.
Dalian's most-active soyoil contract fell 0.44 per cent, while its palm oil contract shed 0.11 per cent. Soyoil prices on the Chicago Board of Trade were down 0.12 per cent.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Oil prices rose for a second day as an industry report showed US crude inventories declined last week, adding to a sense in the market of tightening supplies.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Malaysian palm oil futures are likely to jump 27 per cent to a more than three-year high of 5,500 ringgit per ton in January–March 2026, as rising biodiesel consumption in top producer Indonesia tightens supplies, industry analyst Dorab Mistry said.
The European Union will delay launching its anti-deforestation law for a second time, postponing the ban on imports of commodities such as palm oil linked to forest destruction for another year.
EU soybean imports for the 2025/26 season, which began in July, had reached 2.86 million tons by September 21, down 4 per cent year-on-year, while palm oil imports were 25 per cent lower at 0.60 million tons, according to data published by the European Commission.
Indonesia's new state palm oil firm Agrinas Palma Nusantara is seeking to set up joint operations to manage its vast plantations as it makes efforts to boost output.
Palm oil may extend gains into 4,401-4,429 ringgit per ton, following its stabilisation around a support zone of 4,274-4,309 ringgit, Reuters technical analyst Wang Tao said.
Stocks in Asia fell, following declines on Wall Street as remarks by Federal Reserve Chair Jerome Powell gave little indication about the future path of interest rates and economic data fuelled concerns about slowing growth.