Business Recorder
KUALA LUMPUR: Malaysian palm oil futures surged more than 3% on Wednesday, reaching a four-week high, supported by stronger Chicago soyoil prices, though profit-taking limited the upside. The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange gained 140 ringgit, or 3.09%, to 4,675 ringgit ($1,171.68) a metric ton, the highest closing price since May 5. The contract eased 0.04% in the previous session. The market had a post-holiday rally, largely driven by stronger rival oilseeds, particularly Chicago soybean oil, a Kuala Lumpur-based trader said, adding that profit-taking curbed further gains. Dalian’s most-active soyoil contract rose 0.25%, while its palm oil contract gained 0.43%. Soyoil prices on the Chicago Board of Trade were up 1.3%. Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market. Oil prices rose more than 2% on Wednesday, extending gains from the previous session, as hostilities in the Middle East erupted anew and talks between Tehran and Washington showed little progress. Stronger crude oil futures make palm a more attractive option for biodiesel feedstock. The ringgit, palm’s currency of trade, weakened 0.68% against the dollar, making the commodity cheaper for buyers holding foreign currencies. India’s palm oil imports rose modestly in May from a four-month low in the previous month, but stayed below average, as refiners turned to rival soyoil after palm’s price advantage over competing oils narrowed, five dealers said. Indonesia exported 7.72 million tons of crude and refined palm oil in the first four months of 2026, up 20.38% from a year earlier, statistics bureau data showed.
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