Palm rises mirroring rival soyoil, crude oil
JAKARTA: Malaysian palm oil futures recovered on Wednesday after losses in the previous session, supported by gains in rival soyoil in Dalian and Chicago markets and higher crude prices.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange gained RM31, or 0.76 per cent, to RM4,095 (US$964.89) a metric ton, as of 0232 GMT.
FUNDAMENTALS
Soyoil on the Chicago Board of Trade (CBOT) was up 0.44 per cent. Dalian's most active soyoil contract gained 0.95 per cent and its palm oil contract rose 0.54 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 ticked up in early trading after ending the previous session up more than 4 per cent on worries that the Iran-Israel conflict could disrupt supplies.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Cargo surveyor Intertek Testing Services said exports of Malaysian palm oil products for June 1-15 rose 26.3 per cent, compared to May 1-15, while according to independent inspection company, AmSpec Agri Malaysia the shipments rose 17.8 per cent.
Palm oil looks neutral in a range of RM4,072 to RM4,113 per metric ton, and an escape could suggest a direction, according to Reuters' technical analyst Wang Tao.
MARKET NEWS
Concerns over escalating hostilities in the Middle East stayed front and centre in markets, sending oil prices higher and investors rushing for the safety of US Treasuries and the dollar while dumping stocks.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
33 minutes ago
- The Sun
Samenta: Malaysia's surge in competitiveness due to policy and reforms by government and businesses
PETALING JAYA: Malaysia's achievement in climbing 11 positions to 23rd spot in the 2025 World Competitiveness Ranking (WCR) underscores the strong policy measures and reforms implemented by the government and businesses in strengthening the economic fundamentals and making the nation more competitive on the world stage, said Small and Medium Enterprises Association of Malaysia (Samenta). Samenta national president Datuk William Ng remarked: 'The rise, the highest among all participating economies, reflects progress across key areas of competitiveness, in particular government and business efficiency, both of which improved by eight ranks.' Notably, he said, Malaysia has improved significantly in eradicating bribery and corruption, boosting private investment in research and development (R&D), reducing bureaucracy and strengthening employment. 'Malaysian businesses have demonstrated greater adaptability, productivity and innovation, making our companies more competitive. The country's strong economic growth, low inflation and healthy employment conditions all contribute to this upward trajectory,' said Ng. 'Malaysia's improvement is particularly noteworthy when we consider it within the Southeast Asia context. Among Asean members, we now outperform Thailand (30th), Indonesia (40th) and the Philippines (51st). Our progress underscores our ability to implement reforms effectively and signals to investors and businesses that Malaysia continues to be a leading destination for investment and growth in Southeast Asia,' he added. Ng said recent initiatives have played a key role in this progress, especially the rollout of Reformasi Kerenah Birokrasi, which has helped cut red tape and simplified procedures for businesses and citizens. The Akta Iltizam passed by Parliament in March underscores a strong legislative resolve to ensure efficiency in the public sector, he said, adding that the Corruption Perception Index Task Force, chaired by the chief secretary to the government, is tackling corruption and strengthening institutional integrity. Furthermore, Ng said, the Business Efficiency Task Force, led by Malaysia Productivity Corporation, is hard at work identifying bottlenecks and improving the ease of doing business across sectors. 'All these initiatives collectively create a more stable, efficient and forward-looking ecosystem for companies to operate and grow.' The inclusion of Samenta and SMEs in some of these efforts, including the Business Efficiency Task Force and various productivity initiatives, is indicative of the government's desire to drive the economic reform at all levels, including among their small and medium enterprises, said Ng. 'While we celebrate this progress, we must not become complacent. More needs to be done if we are to realize Ekonomi Madani's ambitious goal of breaking into the top 12 of the ranking by 2033. To further enhance our competitiveness and move up the ranking, we need to strengthen digital transformation, improve skills and education, cut bureaucracy, provide policy consistency and boost research and development initiatives. 'Providing greater incentives and support for companies, especially SMEs, to leverage technology and innovate is key. Ensuring policy stability and reducing red tape will help businesses operate more efficiently and respond faster to market opportunities,' he remarked. Ng said these efforts require a whole-of-nation approach as the government alone cannot affect these reforms. Businesses, he added, including SMEs, must move up the value chain in order for Malaysia to become even more competitive and to future-proof the economy for generations to come.
Malaysian Reserve
35 minutes ago
- Malaysian Reserve
Wilmar posts US$729m security deposit amid Indonesian corruption appeal, PPB discloses
PPB Group Bhd has announced that its associate company, Wilmar International Ltd, has placed a security deposit of 11.88 trillion Indonesian rupiah (approximately US$729 million or RM3.44 billion) with the Indonesian Attorney General's Office (AGO), in connection with an ongoing court appeal involving five of its subsidiaries. In a filing with Bursa Malaysia today, PPB, which holds an 18.8% interest in Wilmar, said the announcement was made by Wilmar on the Singapore Exchange following a press conference by the Attorney General of Indonesia on the same day. The case stems from charges brought by the AGO in April 2024 against five Wilmar subsidiaries, namely PT Multimas Nabati Asahan, PT Multi Nabati Sulawesi, PT Sinar Alam Permai, PT Wilmar Bioenergi Indonesia, and PT Wilmar Nabati Indonesia, for allegedly causing financial losses to the state, making unauthorised profits, and harming the business sector during a domestic cooking oil shortage between July and December 2021. The AGO claimed that the alleged actions led to total state losses of IDR12.3 trillion (about US$755 million), and subsequently appealed a Central Jakarta Court decision that favoured the Wilmar entities. In its statement, Wilmar said the AGO requested the group to 'demonstrate their belief in the Indonesian judicial system and their good faith and innocence, by placing a security deposit' equivalent to part of the alleged losses and supposed illegal gains. The Wilmar subsidiaries have complied with this request. Wilmar stated that the 'Security Deposit will be returned… if the Indonesian Supreme Court upholds the decision of the Central Jakarta Court, but may be forfeited, in full or in part… if the Indonesian Supreme Court finds against the Wilmar Respondents.' The group reiterated: 'The Wilmar Respondents continue to maintain that all actions taken by them were taken in good faith and free from any corrupt intent.' — TMR
New Straits Times
41 minutes ago
- New Straits Times
Perak-based Wide Agro, Japan's Orec to invest RM30mil in new facility
KUALA LUMPUR: Perak-based Wide Agro Ventures Sdn Bhd has partnered with Orec Co Ltd, a company headquartered in Fukuoka, Japan, to establish a new production facility and distribution centre at Seri Iskandar Industrial Park, Perak, with an initial investment of RM30 million. The joint initiative was unveiled through the signing of a memorandum of understanding (MoU) at the World Expo 2025 in Osaka, said Malaysian Investment Development Authority (MIDA). The initiative is expected to significantly expand the production capacity and enhance the productivity of Malaysia's agriculture sector—particularly the palm oil industry—in the coming years. Through the MoU, Orec Co Ltd will provide cutting-edge technology to Wide Agro Ventures for the production and distribution of agricultural machinery and equipment in Malaysia and the regional market. Perak Mentri Besar Datuk Seri Saarani Mohamad said Perak is a land of grace with huge agriculture activity consisting of palm oil, rubber and paddy. "Perak's agricultural sector is a significant part of the state's economy, contributing 14.2 per cent to gross domestic product (GDP). "It plays a vital role in food security and exports, with palm oil being a major export. "By producing sophisticated machinery and equipment, it will leapfrog the contribution of this sector by enhancing efficiency and productivity nationwide," he said in statement today. MIDA chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said the partnership marks a timely and impactful investment that will strengthen Malaysia's capabilities in agricultural machinery manufacturing. He added that the Seri Iskandar facility is poised to become a cornerstone in the sector, acting as a catalyst for greater industrial capacity, technology transfer, and export competitiveness. "By complementing Japanese engineering excellence with Malaysian expertise, we are building a resilient and forward-looking value chain. "This will enhance productivity in the palm oil sector and beyond, while opening doors for local talents, businesses and the wider community to thrive. "Seri Iskandar offers a strategic platform aligned with our national agenda to advance mechanisation and digitalisation in agriculture, and to position Malaysia as a regional hub for high-value machinery manufacturing," he noted. Wide Agro Ventures chief executive officer Ahmad Fadzil Mustafa said this investment marks a significant milestone in the company's journey in Malaysia. "By expanding our manufacturing capabilities in Perak, we are not only reinforcing our commitment to local industrial development but also advancing our mission to deliver light and sustainable agriculture solutions across the region. "We believe in transforming the agriculture sector with better technology, responsibly, sustainably, innovatively, and collaboratively with our partner from Japan," he said.
