Malaysian palm oil futures rose again as stronger rival oils, firmer crude oil and a weaker ringgit helped offset weaker export data.
The benchmark August contract on Bursa Malaysia Derivatives gained 1.28% to 4,494 ringgit a tonne. Palm oil is responding to several supportive price signals at once, rather than relying on one single demand factor.
Stronger vegetable oil markets provided the main lift. Palm oil often moves in line with competing oils because buyers can switch between products depending on price. Gains in China’s Dalian palm oil contract and US soyoil helped improve sentiment across the wider edible oils market. That gives palm oil producers and traders a more supportive pricing backdrop.
Crude oil also strengthened, adding another positive signal. Palm oil is used in biodiesel, so higher energy prices can improve the appeal of biofuel feedstocks. The weaker ringgit added further support. The currency fell 0.71% against the US dollar, making Malaysian palm oil cheaper for overseas buyers.
Dekel Agri-Vision PLC (LON:DKL) aspires to become a leading agro-industrial company in West Africa, one that creates value for shareholders whilst at all times placing the interests of the local communities and environment in which it operates in at the heart of its operations.
