Palm Oil Prices Ticked Up Amid Edible Oils Rally, Crude Slides
Malaysia's benchmark palm oil futures rose slightly on Monday due to higher edible oil prices. However, this increase was tempered by a decline in crude oil prices, which may reduce demand for palm-based biodiesel.
The December contract on Bursa Malaysia increased by 15 ringgit (0.31%) to 4,913 ringgit per ton after a small drop the previous session. The market remains stuck in a narrow range, with prices influenced by the broader edible oils complex.
Rising soyoil prices across China's Dalian exchange and the Chicago Board of Trade contributed to the increase in palm oil futures. However, cheaper crude oil may reduce demand for biodiesel, which could negatively impact palm oil prices.
Export data from Intertek Testing Services showed a 12.8% drop in Malaysia's September 1-20 palm oil product exports compared to the previous month. This decrease raises concerns about inventory builds and potential downward pressure on spot prices.