FX.co ★ Palm Oil Rises for 4th Session, Stays at 3-Month Peak

Malaysian palm oil futures continued their upward trajectory for the fourth consecutive session on Thursday, maintaining a position above MYR 4,300 per tonne, thus reaching a three-month peak. This price increase was bolstered by robust performance in the edible oil markets on the Dalian and Chicago exchanges, a depreciating ringgit, and stronger crude oil prices, all of which enhanced investor risk appetite. Additional upward pressure came from a surge in exports, with cargo surveyors indicating a shipment increase of 7.97% to 9.97% from December for the period of January 1–25. The approach of seasonal holidays like the Lunar New Year and Ramadan also supported positive market sentiment, while anticipations of a significant drop in January production due to weather conditions and harvesting cycles further fueled optimism. In India, the leading consumer of palm oil globally, buyers cancelled orders for soybean oil from South America as the combination of a weakened rupee and elevated global prices increased import costs. This widened the price differential, making palm oil a more appealing option. Nevertheless, gains were tempered by the market's cautious stance ahead of China's January Purchasing Managers' Index (PMI) release, due to its significant influence as a major buyer.