File Photo
Malaysian palm oil futures are on track for a second week of gains, rising 3.31% even as global edible oil prices dip and export duties increase.
Palm oil prices on Bursa Malaysia started off uncertain but gained momentum this week, bucking a broader downturn across global vegetable oil markets. While soyoil and rival palm contracts in China and the US slipped, Malaysia’s futures showed resilience—thanks in part to a softer ringgit, which made exports more appealing. Meanwhile, India, the world's biggest importer, bought less palm oil in July as importers shifted to cheaper soyoil following contract cancellations and favorable price shifts. On top of that, the Malaysian Palm Oil Board raised its reference price for September, lifting export duties to 10%, which could crimp demand. Still, a weaker ringgit and crude oil’s rebound are helping keep palm oil attractive for biodiesel makers and international buyers, balancing out export challenges.
Malaysian palm oil’s steady performance, despite broader price declines, shows how currency moves and energy markets can shape agricultural commodities. The ringgit’s slide versus the US dollar has softened higher export duties for global buyers, while rebounding crude oil prices—boosted by geopolitical jitters—have improved biodiesel prospects. Still, India’s pivot to soyoil highlights that competition across edible oils remains intense.
Malaysia’s policy tweaks and India’s changing buying patterns are redrawing the map for the global edible oil trade. Short-term gains for palm oil may hinge on currency and energy support, but any push above the 4,481 ringgit per ton resistance, as technical analysts point out, could trigger a longer-lasting rally. With sticky US inflation and ongoing rate cut speculation keeping global markets cautious, the convergence of food, currency, and energy dynamics is more relevant than ever.
Source: Online/OFA
Comment Now