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Malaysian palm oil futures rose on Monday, tracking strength in rival soyoil markets in Dalian and Chicago. The benchmark FCPO1! contract for March delivery on Bursa Malaysia Derivatives climbed 113 ringgit, or 2.57%, to close at 4,504 ringgit ($999.11) per tonne.
\"The market today is tracking the performance of soyoil in Dalian and Chicago,\" said a Kuala Lumpur-based trader. Dalian's most-active soyoil contract (DBYcv1) rose 2.81%, while its palm oil contract (CPO1!) added 3.16%. Chicago Board of Trade soyoil (ZL1!) also gained 0.35%. Palm oil tracks price movements in competing edible oils as it vies for a share of the global vegetable oils market. China's soybean oil and meal futures posted their biggest daily gains since 2023 on Monday, while rapeseed meal and palm oil contracts also jumped, after a rally in the Chicago soybean complex following bullish USDA crop reports. The US Department of Agriculture (USDA) had forecast last Friday a smaller-than-expected US soybean crop and cut soybean stock estimates due to a dry end to the growing season, pushing Chicago soybean and soyoil prices to their highest levels in months.
Malaysian palm oil stocks also fell for a third consecutive month in December, dropping 6.91% to 1.71 million tonnes, while crude palm oil output declined 8.3% and exports fell 9.97%, according to data released by the Malaysian Palm Oil Board on Friday. Separately, a survey by cargo surveyors showed Malaysian palm oil exports dropped between 21.4% and 26.8% during 1-10 January. Oil extended gains for a third straight session on Monday, with Brent crude rising above $80 a barrel to reach its highest level in more than four months, driven by broader US sanctions on Russian oil and their expected impact on exports to top buyers India and China. Stronger crude oil futures make palm oil a more attractive feedstock for biodiesel production. The Malaysian ringgit also weakened 0.33% against the US dollar, making the commodity cheaper for buyers holding foreign currencies.
Source: Reuters
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