Business Recorder
KUALA LUMPUR: Malaysian palm oil futures declined more than 1% on Wednesday, as subdued demand from key destination buyers kept prices under pressure. Benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange was down 62 ringgit, or 1.38%, at 4,419 ringgit ($1,125.86) a metric ton by the midday break. It fell 0.78% in the previous session. The market is worried about the lack of demand from key buyers, India and China, said Paramalingam Supramaniam, director at brokerage Pelindung Bestari. “Buyers from India have basically switched to soybean oil from Argentina, while China has been stepping back from nearby purchases and is showing more interest in forward buying, particularly for December delivery,” he said. This has created a demand vacuum in the near-term market, he said. Dalian’s most-active soyoil contract was unchanged at RMB 8,547, while its palm oil contract shed 0.96%. Soyoil prices on the Chicago Board of Trade were down 0.52%. Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market. Oil prices snapped a three-day rally as investors awaited developments around the Middle East ceasefire and braced for a high-stakes summit between U.S. President Donald Trump and Chinese President Xi Jinping. Weaker crude oil futures make palm a less attractive option for biodiesel feedstock. European Union’s soybean imports for the 2025/26 season, which runs from July, reached 11.28 million metric tons by May 10, down 9% from a year earlier. Palm oil imports were down 4% at 2.47 million tons, European Commission data showed. The ringgit, palm’s currency of trade, strengthened 0.18% against the dollar, making the commodity more expensive for buyers holding foreign currencies. Palm oil may bounce into a range of 4,517 ringgit to 4,537 ringgit per metric ton, following its stabilisation around a support at 4,432 ringgit, Reuters technical analyst Wang Tao said.
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