Palm up over 1%, hitting 2-week high on rival oil, crude oil strength

KUALA LUMPUR: Malaysian palm oil futures surged more than 1% on Wednesday, hitting a two-week high,as stronger rival edible oils supported the market and as crude oil prices rose on fresh U.S.-Iran tensions. The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange gained 61 ringgit, or 1.34%, to 4,608 ringgit ($1,131.08) a metric ton, the highest close since June 24. In line with the Chicago and Dalian markets, buying interest in crude palm oil futures has emerged, stoked by tensions in the Middle East, said Paramalingam Supramaniam, director at brokerage Pelindung Bestari. Demand for physical palm oil is yet to show signs of recovery though, while position squaring ahead of the Malaysian Palm Oil Board report on supply and demand also weighed on the market, he said. Dalian’s most-active soyoil contract rose 0.61%, while its palm oil contract climbed 0.38%. Soyoil prices on the Chicago Board of Trade climbed 2.19%. Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market. Oil prices jumped more than 6%, hitting a two-week high after U.S. President Donald Trump said the memorandum of understanding to end the conflict with Iran was “over”, renewing fears of disruptions to Middle East oil supplies. Stronger crude oil futures make palm a more attractive option for biodiesel feedstock. The ringgit, palm’s currency of trade, weakened 0.17% against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies. European Union soybean imports reached 14.1 million metric tons in the 2025/26 season that ended on June 30, down 3% from 2024/25, while palm oil imports fell 4% to 2.9 million tons, European Commission data showed.