Malaysian palm oil ends six-session slide as Chicago soyoil rises
Malaysian palm oil futures ended a six-session losing streak, supported by a 1.85% rise in Chicago soyoil and firmer crude oil. The December contract closed 0.95% higher at 4,578 ringgit per metric ton as traders awaited new Malaysian supply-and-demand data.
Palm oil recovers after six declining sessions
Malaysian palm oil futures rose on Monday, ending a six-session losing streak as gains in Chicago soybean oil spread across the vegetable-oil complex. Reuters reported through Business Recorder that the benchmark December contract on the Bursa Malaysia Derivatives Exchange gained 43 ringgit, or 0.95%, to close at 4,578 ringgit per metric ton, equivalent to $1,120.69 per metric ton.
The recovery followed a difficult period for the Malaysian benchmark. Reuters reported before the rebound that futures had fallen for six consecutive sessions, reached their lowest level in 13 weeks and were heading for a second straight weekly loss. A Kuala Lumpur-based trader cited weak exports, improved production and expectations that closing stocks would rise above 3 million tons. The December contract had lost 3.08% during that week by Friday’s midday trading.
Chicago soyoil and crude provide support
Soybean oil futures on the Chicago Board of Trade rose 1.85%, providing the clearest external support for palm oil. Palm and soybean oil compete for demand in the international edible-oil market, so changes in Chicago prices can quickly influence trader positioning in Kuala Lumpur. Anilkumar Bagani, research head at Mumbai-based vegetable-oil broker Sunvin Group, told Reuters that stronger Chicago soyoil was supporting the market.
Crude oil prices also moved higher in volatile trading. Reuters said Middle East crude exports had increased and Group of Seven countries had pledged to boost supplies, while continuing disruption associated with the US-Israeli war on Iran limited selling. Higher petroleum prices can improve palm oil’s competitiveness as a biodiesel feedstock, linking the agricultural contract to developments in the energy market.
Currency, data and China remain in focus
The Malaysian ringgit weakened 0.1% against the US dollar. Because palm oil is traded in ringgit, that movement made the commodity slightly less expensive for buyers holding foreign currencies. The depreciation was modest, but it added another supportive element for Malaysian exporters and international buyers after the prolonged futures decline.
Traders are now waiting for Malaysian Palm Oil Board figures covering production, stocks and demand. The data will be important in testing whether Monday’s gain marks a durable change in direction or primarily reflects positioning after six losing sessions. Concerns about poor exports, stronger production and inventories above 3 million tons had driven the preceding pressure, making the next official balance-sheet update particularly relevant for producers, refiners and physical traders.
China’s Dalian Commodity Exchange was closed for a public holiday and is scheduled to reopen on October 8. Its absence removed another major reference point for Asian vegetable-oil trading during Monday’s session. Separately, Indonesia’s state-established Danantara Sumberdaya Indonesia began testing a monitoring platform intended to improve transparency in commodity export prices. For market participants, the immediate signals remain Chicago soyoil, crude oil and the forthcoming Malaysian data, while renewed Chinese trading could add direction later in the week.
