Palm oil rises but firmer ringgit, weak demand caps gains
KUALA LUMPUR: Malaysian palm oil futures inched higher on Friday after three sessions of decline, buoyed by stronger Chicago soyoil and crude oil prices, although gains were capped by a firmer ringgit and weak demand from key markets.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange was up 0.41% at 3,927 ringgit ($914.53) a metric ton by the midday break. However, the contract has lost 3.6% so far this week.
Crude palm oil futures resumed trading after a holiday on a bullish note, following a surge in Chicago soyoil and energy futures overnight and during Asian hours, said Anilkumar Bagani, commodity research head at Mumbai-based brokerage Sunvin Group.
However, a stronger ringgit and absence of enthusiastic buying amidst expectations of an increase in Malaysian April palm oil inventories limited the gains, Bagani said. Soyoil prices on the Chicago Board of Trade were up 0.7%.
The Dalian Commodity Exchange is closed from May 1 to May 5 for the Labour Day holidays. Palm oil tracks price movements of rival edible oils as it competes for a share of the global vegetable oils market.
Malaysian palm oil lower on firmer ringgit
Oil prices pulled ahead in early Asian hours after China said its doors are open for talks with the US, raising hopes of a de-escalation in a bitter trade war between the world's two largest economies.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit, palm's currency of trade, strengthened 0.53% against the US dollar, making the commodity more expensive for buyers holding foreign currencies.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
4 hours ago
- Business Recorder
Indian benchmarks close marginally higher
MUMBAI: India's benchmark indexes inched higher on Wednesday, led by IT stocks on signs of progress in trade talks between the US and its key trading partners, such as India and China, while profit booking in financials capped gains. The Nifty 50 rose 0.15% to 25,141.4 and the BSE Sensex added 0.15% to 82,515.14. Negotiators from the US and China have agreed on a framework to get their trade truce back on track, pending final approval by their countries' leaders. Other Asian markets rose on the day, with the MSCI Asia ex-Japan index gaining 0.6%. Meanwhile, Indian and US officials made progress on bilateral trade talks in New Delhi, focusing on industrial goods, agriculture, tariff reductions and non-tariff barriers, according to Indian government sources. Seven of the 13 major sectors logged gains.
Business Recorder
4 hours ago
- Business Recorder
Asian currencies range bound
BENGALURU: Most emerging Asian stock markets rose on Wednesday after US and Chinese officials agreed on a framework to put their trade truce back on track, while currencies traded in a tight range as a lack of specifics kept investors cautious. Negotiators from the Washington and Beijing reached an agreement that would resolve China's export restrictions on rare earth minerals and magnets, and remove some US export restrictions that were recently put in place. The specific details of the framework remain sparse and will be presented to both countries' leaders for approval. 'Perhaps this is a move towards less protectionist measures and more cooperation, and that has helped support sentiment that trade risks might be fading,' said Jeff Ng, head of Asia Macro Strategy at SMBC. MSCI's index of Asian emerging market equities rose as much as 0.9% to a more than three-year high. It was up for a seventh consecutive session, the longest such streak since September 2024. Equities in Taipei climbed 1% to a one-month high, while those in Kuala Lumpur and Manila advanced 0.5% each. Meanwhile, renewed hopes of easing trade tensions, coupled with strong foreign capital inflows on optimism around new President Lee Jae-myung's pro-growth policies, helped South Korean shares advance 1.2% to their highest level since January 2022. Regional currencies, however, were largely subdued as a lack of details from the Sino-US trade talks deterred investors from committing to significant positions. Adding to the caution, a US federal appeals court allowed President Donald Trump's sweeping tariffs to remain in effect, while it reviews a lower court decision blocking them.
Business Recorder
4 hours ago
- Business Recorder
India's granaries overflow as rice stocks hit record, wheat surges
MUMBAI: India's rice stocks in government warehouses rose 18% from a year ago to a record high for the start of June, while wheat stocks have hit their highest level in four years on higher procurement from farmers, official data showed on Wednesday. Record rice stocks will help the world's biggest exporter increase shipments, while an improvement in wheat inventories will help the federal government tame any price spikes later this year by increasing open market sales. State reserves of rice, including unmilled paddy, totalled a record 59.5 million metric tons as of June 1, far exceeding the government's target of 13.5 million tons for July 1. Wheat stocks stood at 36.9 million tons on June 1, well above the government's target of 27.6 million tons, the data showed. 'Rice stocks have piled up way too much. The government really needs to bring them down before the next buying season kicks off in October,' said a New Delhi-based dealer at a global trading firm. India, which accounts for around 40% of global rice exports, removed the last of its export curbs on the grain in March 2025, with the initial restrictions having been imposed in 2022. Wheat stocks have risen to a comfortable position mainly because of higher procurement, which will help New Delhi sell more wheat to bulk consumers during the lean supply season, said a Mumbai-based dealer. The government has so far brought 30 million tons of wheat from farmers, the most in four years, according to data compiled by Food Corporation of India (FCI). Disappointing harvests in the past three years and lower purchases by the FCI had pushed up prices of the staple grain and raised expectations that India may be forced to import wheat for the first time in seven years.
