KUALA LUMPUR: Malaysian palm oil futures rose on Monday, rebounding from three consecutive sessions of declines, buoyed by stronger rival oils and expectations that Indonesia might raise its December palm oil export taxes and levies.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange gained 54 ringgit, or 1.16%, to 4,696 ringgit ($1,055.76) per metric ton at the close.
The Malaysian palm oil futures opened higher following recoveries seen in rival oils during Asian trading hours, said Anilkumar Bagani, research head at Sunvin Group.
“The almost certain increase in Indonesia’s palm oil export taxes and levies in December 2024 has also boosted a chance of rebound in the Malaysian palm oil futures,” he said.
Bagani said he expected Indonesia’s palm oil reference price for December to increase to $1073.56 per ton.
Indonesia’s crude palm oil reference price for November is currently set at $961.97 per ton and its export tax at $124 per ton.
Palm oil suffers worst week in 19 months with 8% drop
Dalian’s most-active soyoil contract fell 0.02%, while its palm oil contract rose 1.15%. Soyoil prices on the Chicago Board of Trade were up 0.91%.
Palm oil tracks price movements of rival edible oils, as they compete for a share of the global vegetable oils market.
Cargo surveyors estimated that Malaysian palm oil exports fell between 8.2% and 9.2% during the Nov. 1-25 period.
Oil prices slipped on Monday following 6% gains last week, but supply worries amid mounting tensions between Western powers and major oil producers Russia and Iran kept a floor under prices.
Brent crude futures for January were down 0.68% at $74.66 a barrel as of 1007 GMT. Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, strengthened 0.38% against the dollar, making the commodity more expensive for buyers holding foreign currencies.
Source: Brecorder
