InfoSAWIT, KUALA LUMPUR — Palm oil prices strengthened as improving global demand prospects supported market sentiment, while traders monitored the impact of flooding across several major producing regions.
According to Gnanasekar Thiagarajan, Head of Trading and Hedging Strategies at Kaleesuwari Intercontinental, festival-season buying has begun to increase. Strong consumption ahead of the Lunar New Year and the start of Ramadan in early 2026 is expected to keep palm oil prices buoyant in the near term.
Heavy rainfall and flooding in parts of Asia, including Malaysia, have also disrupted logistics and distribution. “These disruptions could tighten supply at a time when demand is accelerating,” Thiagarajan said.
Midday Market Highlights:
Benchmark February CPO futures on the Bursa Malaysia Derivatives rose 0.9% to 4,132 ringgit per ton.
Futures have gained in four of the last five trading sessions.
Chicago January soybean oil rose 0.5% to 52.61 cents per pound.
Refined palm oil futures for January on the Dalian Commodity Exchange increased 0.5% to 8,692 yuan per ton.
Dalian January soybean oil remained stable at 8,278 yuan per ton.
The soybean oil premium over palm oil stood at US$161 per ton, above the annual average of US$76.
Palm oil’s premium over gasoil hovered at US$313 per ton, near the yearly average of US$314. (T2)
This article is based on Bloomberg reporting and processed by InfoSAWIT.
