Palm gains marginally after stocks rise below forecast

KUALA LUMPUR – Malaysian palm oil futures bounced back from early losses on Tuesday, buoyed by industry data indicating that inventories grew less than anticipated. The January palm oil contract on Bursa Malaysia Derivatives Exchange rose 2 ringgit, or 0.05%, to 4,260 ringgit ($1,052.63) per metric ton at the end of trading. According to a trader based in Kuala Lumpur, the Malaysian Palm Oil Board’s figures proved favorable, registering lower-than-expected ending stocks and higher exports than initially predicted by market surveys.

Malaysia’s palm oil reserves peaked at a record 3.62 million metric tons in October, outpacing the previous high set a month earlier. The impressive output, coupled with a decline in exports, helped offset the gains. However, the data fell short of the 3.75 million tons benchmark cited in a Reuters poll. The slide in oil prices following US President Donald Trump’s minimal response to Iran’s military action dampened fears of persistent supply disruptions from the Middle East. Additionally, oversupply concerns further weighed on oil prices.

Soybean oil futures in Dalian experienced a 0.14% increase, while palm oil in the same market gained 0.61%. In contrast, soymeal prices on the Chicago Board of Trade declined by 0.1%. Palm oil, like other edible oils, is susceptible to price fluctuations as it competes for its share of the global vegetable oil market. The Malaysian ringgit, which serves as the primary trading currency for palm oil, strengthened by 0.05% against the US dollar, making the commodity marginally pricier for foreign buyers.