Palm snaps 2-day losing streak on short-term demand

KUALA LUMPUR, Oct 16 (Reuters): Malaysian palm oil futures edged higher on Wednesday, snapping a two-day losing streak, on expected supply outlook for next year and short-term demands.

The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange gained 74 ringgit, or 1.75 per cent, to 4,313 ringgit ($1,005.36) a metric ton at the close. The contract shed 1.89 per cent in the past two sessions.

Palm oil is trading higher on Wednesday due to the anticipated supply outlook for the first quarter of 2025 and sustained short-term demand, said Marcello Cultrera, a grains, oilseeds and softs broker at SSY Global.

Earlier this month, Oil World senior analyst David Mielke expected palm oil production to increase by 2.3 million metric tons in 2024-25 compared to the previous season.

Dalian's most-active soyoil contract rose 1.15 per cent, while its palm oil contract DCPcv1 gained 1.3 per cent. Soyoil prices on the Chicago Board of Trade were up 0.64 per cent.

Palm oil tracks prices of rival edible oils as they compete for a share of the global vegetable oils market.