Palm oil prices rose as stronger crude oil and a weaker Malaysian ringgit gave the market fresh support, even as export data pointed to softer demand.
Benchmark Malaysian palm oil futures moved higher to about 4,494 ringgit a tonne. The main driver was a rebound in crude oil prices, which matters because palm oil is used in biodiesel. When crude oil strengthens, vegetable oils can become more attractive as energy-linked feedstocks.
Since palm oil is priced in ringgit, a softer Malaysian currency can make exports cheaper for buyers using US dollars. That can support demand from overseas buyers and reduce some pressure from higher futures prices. Weaker production can tighten supply and help prices hold firm, particularly if energy prices stay supportive.
Palm oil also remains tied to the wider vegetable oil market. Buyers often compare it with soybean oil and other alternatives. If rival oils strengthen, palm oil could find more room to rise.
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.
