Palm rangebound as firmer soyoil counters weaker crude, palm olein
02/07/2026 (News Straits Times), Kuala Lumpur - Malaysian palm oil futures traded in a tight range on Thursday, as stronger soyoil partially countered softer Dalian palm olein and weaker crude oil prices.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange held its ground at RM4,546 (US$1,113.67) a metric ton in early trade.
Dalian's most-active soyoil contract rose 0.59 per cent, while its palm oil contract shed 0.11 per cent. Soyoil prices on the Chicago Board of Trade were up 0.15 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 dropped in early trade after Qatar said Iran and the US had made "positive progress" in indirect talks that concluded on Wednesday, focused on the Strait of Hormuz, which handled one-fifth of global oil supply before the war.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The ringgit, palm's currency of trade, strengthened 0.24 per cent against the dollar, making the commodity slightly more expensive for buyers holding foreign currencies.
Indonesia's new 50 per cent biodiesel blending mandate took effect on Wednesday, requiring a fuel blend of half palm-based diesel and conventional diesel known as B50, even as stakeholders await a revised biodiesel allocation from the government.
Indonesia exported 8.92 million metric tons of crude and refined palm oil in the January to May period, up 7.41 per cent from the same period a year earlier, statistics bureau data showed.
Palm oil may test resistance at RM4,587 per metric ton, a break above which could lead to a gain into the RM4,604 to RM4,619 range, Reuters technical analyst Wang Tao said.
Asian shares skidded on Thursday as investors rotated out of chipmakers following a stellar quarter, while currency and bond markets braced for US jobs data that could gives hints about the risk of interest rate hikes.