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VEGOILS-Palm gains as petroleum surges on Middle East worries

Malaysian palm oil futures edged higher on Wednesday, driven by gains in petroleum rates after Iran's ballistic rocket strike on Israel stired worries of a broader dispute in the Middle East.

The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange was up 39 ringgit, or 0.97%, at 4,045 ringgit ($ 972.59) a metric heap at the midday break. The contract rose 1.8% in over night trade.

The market opened higher, buoyed by firmer petroleum rates on the Middle East news, a Kuala Lumpur-based trader said.

Oil costs increased by more than a dollar due to rising issues Middle East tensions might intensify, potentially interrupting crude output from the area, following Iran's greatest ever military blow against Israel.

Brent crude futures for December were up 1.88% at $ 74.94 a barrel, as of 0518 GMT. More powerful petroleum futures make palm a more attractive alternative for biodiesel feedstock.

Soyoil rates on the Chicago Board of Trade increased 1.14%. Dalian's vegetable oil markets were closed for the Golden Week holiday in China.

Palm oil tracks price movements of competing edible oils, as they compete for a share of the international veggie oils market.

The ringgit, palm's currency of trade, enhanced somewhat against the dollar, making the commodity more expensive for purchasers holding foreign currencies.

The European Union's palm oil imports up until now in the 2024/25 season that started in July stood at 645,000 metric tons, since Sept. 29, down 36% from a year earlier, information from the European Commission revealed on Tuesday. The EU is the world's. third-largest importer of palm oil.

Palm oil might rise into a series of 4,120 ringgit to 4,153. ringgit per metric load, as it may have resumed its uptrend,. Reuters technical expert Wang Tao stated.

(source: Reuters)