Palm oil has begun to move again. After weeks of drift, futures in Malaysia have found a footing, lifted by stronger crude oil prices and renewed buying interest in Asia.
Prices picked up as oil markets firmed, improving margins for biodiesel producers and making palm-based fuel blends more attractive. In China, Dalian palm olein futures rose in tandem, reflecting tighter supply expectations and a turn in demand sentiment. The shift has revived trade volumes and drawn speculative money back into a space that had turned lethargic through much of the quarter.
At the same time, export data suggest steady demand from key importers, helped by currency moves and the relative affordability of palm compared with soybean or sunflower oil. Producers are also benefiting from improving refining margins as energy costs stabilise, reducing some of the strain seen earlier in the year.
Dekel Agri-Vision PLC (LON:DKL) aspires to become a leading agro-industrial company in West Africa, one that creates value for shareholders whilst at all times placing the interests of the local communities and environment in which it operates in at the heart of its operations.
