Palm rises for fourth straight session on firm crude, soft ringgit
KUALA LUMPUR: Malaysian palm oil futures ended higher after reversing earlier losses on Monday, as stronger crude oil prices and a softer ringgit supported the market while weaker rival Dalian oils capped the gains.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange gained 7 ringgit, or 0.17%, to 4,125 ringgit ($961.09) a metric ton at the close.
The contract has risen for four consecutive sessions.
Higher crude oil prices during Asian hours limited the decline on palm prices despite weaker Dalian palm olein, a Kuala Lumpur-based trader said.
'The weaker ringgit also lent support to the market,' the trader added.
Dalian's most-active soyoil contract fell 0.44%, while its palm oil contract shed 0.33%. Soyoil on the Chicago Board of Trade (CBOT) added 0.59%.
Palm subdued as strong crude oil, Chicago soyoil counter weak Dalian
Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market.
Oil prices jumped to their highest since January as the United States' weekend move to join Israel in attacking Iran's nuclear facilities stoked supply concerns.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit, palm's currency of trade, weakened 0.99% against the dollar, making the commodity cheaper for buyers holding foreign currencies.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
2 hours ago
- Business Recorder
Asian countries most vulnerable to Strait of Hormuz blockade
TOKYO: Around 84 percent of oil passing through the Strait of Hormuz is destined for Asia, leaving the economies of China, India, South Korea and others vulnerable should Iran blockade the crucial trading route over US strikes on its nuclear sites. Around 14.2 million barrels of crude oil and 5.9 million barrels of other petroleum products pass through the strait per day – representing around 20 percent of global production in the first quarter, according to the US Energy Information Administration (EIA). And crude oil from Saudi Arabia, the UAE, Iraq, Kuwait, Qatar and Iran almost exclusively passes through the corridor. Tankers U-turn, zig-zag, pause around Strait of Hormuz Here are the main Asian countries where oil exported via the strait is destined: China More than half of the oil imported by East Asia passes through the Strait of Hormuz, experts estimate. China is one of the largest buyers, importing 5.4 million barrels of crude oil a day through Hormuz in the first quarter this year, according to the EIA. Saudi Arabia is China's second-largest supplier of crude oil, accounting for 15 percent of its total oil imports – 1.6 million barrels a day. China also buys more than 90 percent of Iran's oil exports, according to the analysis firm Kpler. It imported 1.3 million barrels of Iranian crude oil a day in April, down from a five-month high in March. India India is highly dependent on the Strait of Hormuz, importing 2.1 million barrels of crude a day through the corridor in the first quarter, EIA data shows. Around 53 percent of India's imported oil in early 2025 came from Middle Eastern suppliers, particularly Iraq and Saudi Arabia, local media reported. Wary of an escalating conflict in the Middle East, New Delhi has increased its imports of Russian oil over the past three years. 'We have been closely monitoring the evolving geopolitical situation in the Middle East since the past two weeks,' India's Minister of Petroleum and Natural Gas Hardeep Singh Puri said on Sunday. 'We have diversified our supplies in the past few years and a large volume of our supplies do not come through the Strait of Hormuz now,' he wrote on X, adding 'We will take all necessary steps to ensure stability of supplies of fuel to our citizens.' South Korea Around 68 percent of South Korea's crude oil imports pass through the Strait of Hormuz – 1.7 million barrels a day this year, according to the EIA. South Korea is particularly dependent on its main supplier Saudi Arabia, which last year accounted for a third of its oil imports. Seoul's trade and energy ministry said there have been 'no disruptions so far in South Korea's crude oil and LNG imports' but 'given the possibility of a supply crisis', officials were 'planning for potential disruptions in the Strait of Hormuz'. 'The government and industry stakeholders have prepared for emergencies by maintaining a strategic petroleum reserve equivalent to about 200 days of supply,' the ministry said in a statement. Japan Japan imports 1.6 million barrels of crude oil a day through the Strait of Hormuz, the EIA says. Japanese customs data showed 95 percent of crude oil imports last year came from the Middle East. The country's energy freight companies are readying for a potential blockade of the strait. 'We're currently taking measures to shorten as much as possible the time spent by our vessels in the Gulf,' shipping giant Mitsui OSK told AFP. Others Around 2 million barrels of crude oil passing through the Strait of Hormuz each day in the first quarter were destined for other parts of Asia – particularly Thailand and the Philippines – as well as Europe (0.5 million barrels) and the United States (0.4 million barrels). Limited alternatives Asian countries could diversify their oil suppliers, but it is difficult to replace the large volumes coming from the Middle East. In the short term, 'elevated global oil inventories, OPEC+'s available spare capacity, and US shale production all could provide some buffer', experts at MUFG Bank said. 'However, a full closure of the Hormuz Strait would still impact on the accessibility of a major part of this spare production capacity concentrated in the Persian Gulf,' they said. Saudi Arabia and the UAE have infrastructure to bypass the strait, potentially mitigating disruptions, but their transit capacity remains very limited – around 2.6 million barrels a day. And the Goreh-Jask pipeline built by Iran to export via the Gulf of Oman, which has been inactive since last year, has a maximum capacity of only 300,000 barrels per day, according to the EIA.
Business Recorder
4 hours ago
- Business Recorder
India bonds end off lows as oil gives up most gains
MUMBAI: Indian government bonds came off lows to end little changed on Monday as oil prices gave up gains that were triggered by the U.S. attack on Iran's nuclear facilities over the weekend. The yield on the benchmark 10-year bond ended at 6.3053%, compared with its previous close of 6.3087%. The most liquid 6.79% 2034 bond yield ended at 6.3767%, compared with 6.3795% previous close. Yields move inversely to bond prices. 'Markets are jittery, expecting the worst, though the economy looks fairly firmly placed as of now. We need to wait and see how things progress,' Madan Sabnavis, chief economist at Bank of Baroda, said. Iran said that the U.S. attack on its nuclear sites expanded the range of legitimate targets for its armed forces and called Trump a 'gambler' for joining Israel's military campaign against the Islamic Republic. Brent crude oil futures were around $77 per barrel in Asian hours, after hitting a five-month high of $81.40 earlier in the day. Indian bond yields end a tad higher on week amid worries over oil surge Oil is a major component of India's import bill and surging prices prove to be inflationary. Earlier this month, the Reserve Bank of India reduced its inflation forecast to 3.7% and cut its key lending rate by a steeper-than-expected 50 basis points to assure stakeholders about focus on economic growth and aid in faster transmission, according to the policy minutes. IDFC First Bank expects India's central bank to stay on hold in August and October and cut rates by 25 basis points in December. Rates Indian overnight index swap (OIS) rates ended flat, in line with government bonds. The one-year OIS rate ended at 5.52%, while the two-year OIS rate settled at 5.53%. The most liquid five-year OIS rate was at 5.75%.
Business Recorder
5 hours ago
- Business Recorder
Indian equity benchmarks track Asian peers lower on Mideast tensions
India's equity benchmarks inched lower on Monday, tracking Asian peers, as investors assessed the likelihood of Iran's response to the United States' bombing of its nuclear sites. The indexes pared some losses as Brent crude oil futures retreated below $77 per barrel, after hitting a five-month high earlier. The Nifty 50 closed 0.56% lower at 24,971.9 and the BSE Sensex fell 0.62% to 81,896.79, after trading as much as 1.1% lower earlier in the session. The U.S. index futures too recovered, while the MSCI Asia ex Japan was down 0.8%, trimming some losses. Higher crude oil prices are a negative for India, which depends heavily on imports for its energy requirements, as they could stoke inflation and widen the fiscal deficit. 'Most of the market is not buying the argument that Iran would be able to take control of the Strait (of Hormuz) and block oil exports. Moreover, Iran also gets a substantial chunk of its own imports through that route,' said Arun Malhotra, fund manager at CapGrow Capital. Investors are worried that Iran's retaliation to the United States' attacks on its nuclear facilities may include closure of the Strait of Hormuz, through which roughly a fifth of global crude supply flows. Indian stocks set to slip after US attack on Iran's nuclear sites However, most analysts and brokerage firms, including UBS, said they do not expect a prolonged supply disruption. Information technology stocks, which get a significant chunk of revenue from the U.S., shed 1.5% after Accenture posted decline in outsourcing orders due to a cutback in U.S. government spending and tariff uncertainty. The broader, more domestically-focused mid-caps and small-caps added 0.4% and 0.7%, respectively, partly driven by gains in shipping and defence companies. Bharat Electronics rose 3.1%, and was among top three Nifty gainers, on securing orders worth 5.85 billion rupees ($67.6 million).
