Malaysian palm oil futures experienced a rebound on Monday, bringing an end to a six-day decline, as they tracked higher soyoil prices. The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange rose by 14 ringgit, or 0.36%, to reach 3,940 ringgit ($819.53) per metric ton at the close of trading, marking the termination of its longest losing streak since September 2023.
In contrast, Dalian’s most-active soyoil contract rose by 0.29%, while its palm oil contract experienced a 1.21% decline. Concurrently, soyoil prices on the Chicago Board of Trade ticked 0.87% higher.
Palm oil, being influenced by price movements in related oils due to competition in the global vegetable oils market, is beginning to compete with alternative oils on price in anticipation of normal seasonally increased production. Weaker crude oil futures have rendered palm a less attractive option for biodiesel feedstock. Additionally, the Malaysian ringgit, the currency of trade for palm, strengthened by 0.13% against the dollar.
AmSpec Agri Malaysia reported a 14.3% increase in exports of Malaysian palm oil products for April 1-20 compared to the previous month, while cargo surveyor Intertek Testing Services indicated a 10.2% rise in palm exports.
Furthermore, Indonesia’s palm oil exports in February totaled 1.3 million tons, with exports for the March 1-27 period reaching around 885,000 tons, as per trade ministry data. Weather forecast reports from LSEG suggested an anticipated increase in rainfall across Indonesia and Malaysia in late April, with a positive outlook for palm oil production due to the favorable conditions.