Palm Oil Holds Two-Month High
Malaysian palm oil futures edged higher on Wednesday, hovering around MYR 4,265 per tonne and extending gains for a third consecutive session, as prices remained near a two-month peak. The upside was supported by firmer edible oil prices on the Dalian and Chicago markets, alongside stronger export estimates. Cargo surveyors reported that Malaysian palm oil exports for January 1–25 rose between 7.97% and 9.97% compared with the same period in December. Meanwhile, demand is expected to improve ahead of the Lunar New Year and the Ramadan season in February, while market participants also anticipate a sharp decline in January output due to seasonal factors. However, gains were capped by a firmer ringgit, which tends to reduce export competitiveness, and caution ahead of China’s January PMI data, given the country’s role as a key buyer. Investors also remained watchful ahead of the U.S. Federal Reserve’s first interest rate decision of the year.
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