Palm oil futures in Malaysia inched higher, with the benchmark contract settling at 4,260 ringgit per tonne, reflecting a telling move that ties back to developments far beyond domestic plantations. A key driver behind the move is strength in the Chinese Dalian soya oil contract, which firmed by nearly 1% in the latest session. The two oils compete in multiple global markets, and when soya oil trades higher, palm oil tends to follow because relative value reasserts itself across the substitution chain.
Layered on top is the weakening ringgit, which has declined around 0.24% against the dollar. For foreign buyers, this translates to more attractive export pricing for Malaysian palm oil. When the currency effect aligns with commodity pricing, the result is a structural shift in competitiveness that can favour producers across the value chain, from estate operators to refiners.
Indonesia’s most recent data shows August stock levels easing to 2.54 million tonnes, down slightly on the previous month. While not drastic, this tightening adds further support to current price levels.
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.
