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Palm Oil Prices on the Malaysian Exchange Record Weekly Gains, Driven by Low Prices



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Palm Oil Prices on the Malaysian Exchange Record Weekly Gains, Driven by Low Prices

InfoSAWIT, KUALA LUMPUR – The benchmark crude palm oil contract for March 2025 delivery on the Malaysian Derivatives Exchange recorded an increase this weekend. The contract price rose by RM 44 per ton, or approximately 0.97%, reaching RM 4,587 per metric ton during the midday break on Friday (December 27).

According to Reuters, throughout the week, this contract has experienced an increase of about 2.46%, halting a downward trend that lasted for the previous two weeks.

Anilkumar Bagani, Head of Commodity Research at Sunvin Group, stated that this increase was driven by several key factors. Market participants took advantage of previously lower prices to make purchases. Additionally, the weakening of the Malaysian Ringgit, which depreciated by 0.18% against the US dollar, made palm oil prices more competitive for international buyers.

Furthermore, futures prices for vegetable oils in China, including soyoil and palm oil on the Dalian Exchange, rose by 1.31% and 1.1%, respectively. Soybean oil prices on the Chicago Board of Trade (CBOT) also saw an increase of 0.43%.

Despite recording a positive weekly performance, several factors limited the rise in palm oil prices. Weak export performance was noted, as data from cargo surveyors indicated that Malaysia's palm oil exports during the period of December 1-25 decreased by 1.1%-4% compared to the same period last month. Additionally, a lack of new buying activity as the year-end approached further restricted price surges.

In addition to domestic factors, global developments also influenced price movements. Global vegetable oil prices, including soybean and soybean meal on the CBOT, increased by more than 1%. This was driven by concerns over dry weather in some regions of Argentina, which affected supply and prompted speculators to exit their short positions. (T2)

 


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