Palm gains over 2% on firmer soyoil, softer stock build

Malaysian palm oil futures climbed 2.51% to 4,363 ringgit per metric ton by Wednesday’s midday break, recovering after six consecutive sessions of losses. Business Recorder reported that stronger soybean oil prices and Malaysian inventory data helped lift the contract, with stocks increasing by less than traders had anticipated.

October inventories nevertheless reached a record, as strong production outweighed a pickup in exports, while November 1-10 shipments were estimated to have slipped 1.9% to 2.3% from the previous month. Gains in soyoil contracts in Dalian and Chicago, alongside a weaker ringgit, also supported palm oil; however, market sentiment remains exposed to soybean oil prices and export activity. Higher crude prices added support by improving palm oil’s appeal as biodiesel feedstock.