JAKARTA: Malaysian palm oil futures closed higher on Thursday, recovering from earlier losses, due to support from gains in competing vegetable oils on the Dalian exchange.
The January benchmark contract for palm oil on the Bursa Malaysia Derivatives Exchange rose by 33 ringgit, or 0.67%, ending at 4,950 ringgit ($1,125.00) per metric ton.
At Dalian, the most active soyoil contract increased by 1.78%, while the palm oil contract saw a 2.8% rise. Meanwhile, soyoil prices on the Chicago Board of Trade slipped by 0.56%.
Palm oil closely follows price movements of other edible oils as it vies for a share in the global vegetable oil market.
On Thursday, Edi Wibowo, bioenergy director at Indonesia’s Energy and Mineral Resources Ministry, announced at an industry conference that the government plans to raise the palm oil blend in biodiesel to 50% by 2028.
India’s vegetable oil imports are projected to decrease to 15 million tons for the 2024-25 season due to favorable weather likely boosting domestic production, according to an industry group at the conference.
India’s palm oil imports surged 59% in October to a three-month peak compared to the previous month, as refiners replenished stocks depleted by lower imports in recent months amid strong festive demand.
The ringgit, which is the currency used for trading palm oil, remained steady against the U.S. dollar. A weaker ringgit typically makes vegetable oils more affordable for foreign buyers.
Oil prices remained stable on Thursday following a U.S. election-triggered sell-off, balanced by a strong dollar, reduced crude imports in China, and the ongoing impact of Hurricane Rafael’s production cuts.
