Malaysian palm oil futures continued their upward momentum for a sixth consecutive session on Wednesday, closing at the highest level in over two-and-a-half months. The benchmark December contract on the Bursa Malaysia Derivatives Exchange gained 56 ringgit, or 1.4%, reaching 4,044 ringgit ($979.89) per metric ton—its highest point since July 5.
Boosted by strong performance in Dalian contracts despite profit-taking in other oils, the contract has risen 8.24% over the last six sessions. The ongoing rally is largely driven by China’s recent stimulus measures, reinforcing demand in Dalian oils. In contrast, soyoil prices on the Chicago Board of Trade fell 0.23%, reflecting profit-taking trends in rival oils.
Additionally, exports of Malaysian palm oil products are estimated to have increased between 13% and 13.9% from Sept. 1 to 25 compared to the same period last month. However, Indonesia’s palm oil exports saw a 36% drop year-on-year in July, according to the Indonesian Palm Oil Association (GAPKI).
Weaker crude oil prices are also weighing on the attractiveness of palm oil as a biodiesel feedstock, as market players assess China’s economic outlook and its potential impact on fuel demand.
