Palm rebounds on firmer crude, soyoil; weak Dalian olein caps gains

KUALA LUMPUR: Malaysian palm oil futures rebounded on Tuesday after two straight sessions of losses, supported by firmer crude oil and soyoil prices, though weaker Dalian palm olein capped the advance.

The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange gained RM20 , or 0.41 per cent, to RM4,877 (US$1,197.10) a metric ton in early trade.

Crude oil prices gained after several days of declines, with investors awaiting developments on potential US-Iran talks at the United Nations General Assembly this week.

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

Dalian's most-active soyoil contract rose 0.7 per cent, while its palm oil contract shed 0.13 per cent. Soyoil prices on the Chicago Board of Trade crawled up 0.01 per cent.

Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market.

The ringgit, palm's currency of trade, strengthened 0.02 per cent against the dollar, making the commodity slightly more expensive for buyers holding foreign currencies.

Crude palm oil prices are expected to remain above US$1,154 per metric ton in October and through the rest of the year, underpinned by weather uncertainties and favourable energy markets, the Malaysian Palm Oil Council said.

India's soyoil imports are likely to surge to a record high in the 2025/26 marketing year as rallies in rival palm and sunflower oils make soyoil more competitive for price-sensitive Indian buyers, industry officials said.

Palm oil may bounce into a range of RM4,931 to RM4,959 per metric ton, following its stabilisation around a support at RM4,844 , Reuters technical analyst Wang Tao said.

Technology stocks powered Asian markets higher on Tuesday as lower oil prices lifted sentiment and investors pinned their hopes on US-Iran talks, while the dollar stood tall on bets that more hikes are needed to rein in inflation.