Palm rebounds on stronger rival oils, crude oil prices

Palm rebounds on stronger rival oils, crude oil prices KUALA LUMPUR, July 8 : Malaysian palm oil futures rose on Wednesday, after the previous session's slight decline, supported by stronger rival edible oils and crude oil prices. The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange gained 30 ringgit, or 0.66 per cent, to 4,577 ringgit ($1,123.19) a metric ton in early trade. The contract slipped 0.07 per cent in the previous session. FUNDAMENTALS * Dalian's most-active soyoil contract was up 0.84 per cent, while its palm oil contract added 0.74 per cent. Soyoil prices on the Chicago Board of Trade rose 1.43 per cent. * Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market. * Crude oil prices climbed nearly 2 per cent after the U.S. military launched airstrikes against Iran and reimposed sanctions on the country's sale of the commodity, raising fears their fragile truce was unravelling and that Middle East supplies could be disrupted again. * Stronger crude oil futures make palm a more attractive option for biodiesel feedstock. * The ringgit, palm's currency of trade, weakened 0.2 per cent against the dollar, making the commodity cheaper for buyers holding foreign currencies. * European Union soybean imports reached 14.1 million metric tons in the 2025/26 season that ended on June 30, down 3 per cent from 2024/25, while palm oil imports fell 4 per cent to 2.9 million tons, European Commission data showed. * Palm oil may retest a resistance at 4,592 ringgit per metric ton, as it has managed to stay within a rising channel, Reuters technical analyst Wang Tao said. MARKET NEWS * Oil prices jumped and bond futures slid on Wednesday after the U.S. struck Iran and reinstated trade sanctions following attacks on tankers in the Strait of Hormuz, while stocks wobbled as momentum ebbs from the record-breaking AI rally. DATA/EVENTS No data/events expected for Wednesday ($1 = 4.0750 ringgit)