Palm oil futures rise after six-day decline
Malaysian palm oil futures rebounded on Monday, ending a six-day losing streak. The December contract on Bursa Malaysia Derivatives climbed 43 ringgit, or 0.95%, to settle at 4,578 ringgit per ton ($1,120.69 per ton). The rally was driven by gains in Chicago soyoil, which rose 1.85%. Since palm oil competes with other vegetable oils globally, stronger soyoil prices provided a lift.
Higher crude oil prices also supported the market. As palm oil is used as a biodiesel feedstock, firmer crude makes it a more attractive option. However, trading remained volatile due to shifting expectations around Middle East supplies.
Market participants are now awaiting fresh data from the Malaysian Palm Oil Board on production, stocks, and demand. These figures could influence the next price movement following the recent decline. Additionally, a 0.1% weakening of the Malaysian ringgit against the US dollar made palm oil slightly cheaper for foreign buyers, providing some export support. Chinese exchanges remain closed for a public holiday and are set to reopen on October 8.