28.01.202604:24:44UTC+00Palm Oil Holds Two-Month High

Malaysian palm oil futures experienced a rise on Wednesday, trading around MYR 4,265 per tonne. This marked the continuation of gains for the third straight session as prices remained near their highest in two months. Key factors contributing to this upward trend included stronger edible oil prices on the Dalian and Chicago markets, complemented by robust export estimates. Reports from cargo surveyors indicated that Malaysian palm oil exports from January 1 to 25 surged by between 7.97% and 9.97% compared to the same period in December. Additionally, demand is anticipated to increase in light of the approaching Lunar New Year and Ramadan festivities in February. Market participants also predict a significant drop in January's output due to seasonal influences. However, the potential for further gains was limited by a stronger ringgit, which can diminish export competitiveness, and caution surrounding the release of China’s January PMI data, considering its critical role as a major buyer. Investors were also vigilant in anticipation of the U.S. Federal Reserve’s initial interest rate decision for the year.