Malaysian Palm Oil Prices Climb Due To Middle East Tensions

Malaysian palm oil futures have surged due to rising crude oil prices amid Middle East tensions, notably Iran's missile strike on Israel, which enhances palm oil's attractiveness as a biodiesel feedstock. The December benchmark palm oil contract rose by 0.97% to 4,045 ringgit per metric ton, while Brent crude futures increased by 1.88%. This geopolitical unrest is affecting global edible oil markets, with soyoil prices also climbing. The EU's palm oil imports are projected to drop by 36% for the 2024/25 season due to supply constraints and higher prices. Additionally, the ringgit's appreciation against the dollar could impact global trade. Analysts foresee further palm oil price hikes, suggesting a potential upward trend. UkrAgroConsult provides market intelligence on grains and oilseeds through its AgriSupp platform, offering a 7-day free demo.

Malaysian palm oil futures surged on Wednesday as escalating Middle East tensions sparked a sharp rise in crude oil prices, lifting palm oil’s appeal as a biodiesel feedstock. The uptick in Malaysian palm oil prices comes after Iran’s ballistic missile strike on Israel heightened fears of a broader conflict, potentially disrupting crude oil production in the region. The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange rose by 39 ringgit (0.97%) to 4,045 ringgit ($972.59) per metric ton by midday, continuing a 1.8% gain from overnight trading. Simultaneously, Brent crude futures for December delivery increased by 1.88% to $74.94 per barrel. Higher crude oil prices make palm oil a more attractive biodiesel option, which, in turn, pushes up its demand and price. Rising crude oil prices due to geopolitical unrest are making palm oil a go-to for biodiesel, influencing global edible oil markets. Investors should note that other edible oils, ...