PALMOILMAGAZINE, KUALA LUMPUR – The benchmark crude palm oil futures contract for March 2025 delivery on the Malaysia Derivatives Exchange rose by RM 44 per ton (approximately 0.97%), reaching RM 4,587 per metric ton by midday on Friday, December 27, 2024.
According to Reuters, the contract gained about 2.46% over the week, breaking a two-week losing streak.
Anilkumar Bagani, Head of Commodity Research at Sunvin Group, attributed the increase to several factors. Market participants took advantage of previously lower prices to make purchases. Additionally, the Malaysian Ringgit weakened by 0.18% against the US Dollar, making palm oil more competitive for international buyers.
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Vegetable oil futures in China also saw gains, with soyoil and palm oil contracts on the Dalian Commodity Exchange rising 1.31% and 1.1%, respectively. Meanwhile, soybean oil prices on the Chicago Board of Trade (CBOT) increased by 0.43%.
Despite the positive weekly performance, several factors limited further price increases. Weak export performance, as indicated by cargo surveyor data, showed Malaysia’s palm oil exports fell by 1.1%-4% during December 1-25 compared to the previous month. Additionally, reduced new buying activity toward the year’s end capped the price surge.
Global developments also influenced price movements. Vegetable oil prices, including soybean and soybean meal on CBOT, rose over 1%, driven by concerns over dry weather in parts of Argentina. This situation affected supply and prompted speculators to unwind short positions. (P2)
