Palm oil rises for third day, tracking crude oil and Dalian

Malaysian palm oil futures experienced their third consecutive day of increases on Wednesday, influenced by higher crude oil prices and gains in comparable edible oils on the Dalian market. The December delivery benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange climbed 51 ringgit, or 1.09%, to 4,733 ringgit ($1,160.05) per metric ton by midday.

A trader in Kuala Lumpur attributed the movement to palm oil following the performance of Dalian and crude oil prices. Oil prices surged after two vessels were attacked in the Strait of Hormuz, with Iranian officials stating they were employing new strategies to target ships in an effort to maintain high oil prices and impact the US midterm elections.

The stronger crude oil futures make palm oil a more appealing option for biodiesel feedstock. The most actively traded soyoil contract in Dalian rose 0.89%, while its palm oil counterpart gained 1.07%. Soyoil prices on the Chicago Board of Trade climbed 0.18%. Palm oil mirrors the price movements of other edible oils as it competes for a share of the global vegetable oils market.

Malaysia's palm oil stockpiles in September expanded to 3.51 million metric tons, surpassing expectations and reaching previously unimaginable levels. Cargo surveyors estimated that exports of Malaysian palm oil products for October 1-10 increased by 33.5% to 37.7% compared to the previous month. The ringgit, palm's trading currency, strengthened 0.1% against the dollar, making the commodity marginally more expensive for buyers holding foreign currencies.

Palm oil may test a resistance level of 4,766 ringgit per metric ton, and a break above this could lead to a rise within the 4,799-4,820 ringgit range, according to Reuters technical analyst Wang Tao.