Palm rises on expectations of lower output, strong demand
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange gained RM18, or 0.45 per cent, to RM3,983 (US$943.39) a metric ton at the midday break. The contract fell 3.9 per cent in the previous two sessions.
Crude palm oil futures traded higher on the expectation that production and export would remain bullish in the coming weeks, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.
"We see production pace slowing down and robust demand going forward," he added.
The Malaysian Palm Oil Board is expected to release its June supply and demand data on July 10.
Dalian's most-active soyoil contract rose 0.38 per cent, while its palm oil contract added 0.1 per cent. Soyoil prices on the Chicago Board of Trade were down 0.27 per cent.
Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
The Bursa Malaysia Derivatives Exchange palm oil contract will be closed on Friday for a public holiday.
Crude oil prices inched higher, extending gains from the previous day as a larger-than-expected draw in U.S. crude stocks signalled firm demand, while investors remained cautious about the Iran-Israel ceasefire and stability in the Middle East.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
The ringgit, palm's currency of trade, strengthened 0.31 per cent against the dollar, making the commodity more expensive for buyers holding foreign currencies.
Cargo surveyors estimated that exports of Malaysian palm oil products for June 1-25 rose between 6.6 per cent and 6.8 per cent, compared with the same period a month ago.
Malaysia has lowered its July crude palm oil reference price, a change that decreases the export duty to 8.5 per cent, a circular on the Malaysian Palm Oil Board website showed.
Palm oil may retest support of RM3,978 per ton, with a good chance of breaking it and falling towards RM3,938, Reuters technical analyst Wang Tao said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
6 minutes ago
- New Straits Times
Two Chinese nationals in California accused of illegally shipping Nvidia AI chips to China
UNITED STATES: Two Chinese nationals in California were arrested and charged with illegally shipping tens of millions of US dollars' worth of AI chips to China, including Nvidia H100s, the US Justice Department said on Tuesday. Chuan Geng, 28, of Pasadena, and Shiwei Yang, 28, of El Monte, exported the advanced Nvidia chips and other technology to China from October 2022 through July 2025 without the required licences from the US Commerce Department, the Justice Department said, citing an affidavit filed with the complaint. According to the affidavit, Geng and Yang's El Monte-based company, ALX Solutions, was founded in 2022, shortly after the US imposed sweeping export controls on technology to China to slow Beijing's military modernisation and began to require licences for the chips. China opposed the US move as harming normal trade. Over 20 shipments from ALX went to shipping and freight forwarding companies in Singapore and Malaysia, which are often used as transshipment points for illegal goods to China, a federal agent, who works for the Commerce Department, said in the affidavit. ALX received a US$1 million payment from a China-based company in January 2024 and other payments from companies in Hong Kong and China, not from the freight forwarding companies, the agent said. Nvidia H100s are advanced chips that can be used to train large language models and many other applications. Records show that from at least August 2023 to July 2024, ALX Solutions bought over 200 Nvidia H100 chips from San Jose, California-based server maker Super Micro Computer, declaring that the customers were in Singapore and Japan, the agent said. On one 2023 invoice valued at US$28,453,855, ALX said the customer was in Singapore, but a US export control officer in Singapore could not verify the chips arrived in the country and the company did not exist at the listed location, the document says. "This case demonstrates that smuggling is a nonstarter," a Nvidia spokesperson said in a statement. "We primarily sell our products to well-known partners... who help us ensure that all sales comply with US export control rules." Diverted products have "no service, support or updates," the statement added. Super Micro said in a statement it was "firmly committed to compliance with all US export control regulations." It said it did not comment on ongoing legal matters, but cooperated with authorities in any such proceedings. Geng and Yang appeared in federal court in Los Angeles on Monday, the Justice Department said. Geng, a permanent resident, was released on US$250,000 bond. Yang, who overstayed her visa, has a detention hearing on Aug 12.
Daily Express
6 minutes ago
- Daily Express
13MP: Nothing for Labuan folks
Published on: Wednesday, August 06, 2025 Published on: Wed, Aug 06, 2025 By: Sohan Das Text Size: 'It's unfortunate that Labuan has not been included in this radar though the island was in need of such focus to regain its past glory of regional shopping destination though Labuan now depended much on tourism now since the oil and gas sector as well as the financial services was delivering much impact,' said Dahlif. LABUAN: Labuan Indian Chamber of Commerce and Industry Chairman Datuk Dahlif Singh described the 13th Malaysia Plan (13MP) as a 'super' cake offering something for every Malaysian state and territory but without anything special for Labuan. He supported this observation based on items revealed in the 13th MP. Advertisement He said under 13 MP focus was given to the development of Special Tourism Investment Zones (STIZ) in Johore, Melaka, Negeri Sembilan and Sarawak for the creation on new tourism products to further tap the industry's potential. 'It's unfortunate that Labuan has not been included in this radar though the island was in need of such focus to regain its past glory of regional shopping destination though Labuan now depended much on tourism now since the oil and gas sector as well as the financial services was delivering much impact,' said Dahlif. Subscribe or LOG IN to access this article. Support Independant Journalism Subscribe to Daily Express Malaysia Access to DE E-Paper Access to DE E-Paper Exclusive News Exclusive News Invites to special events Invites to special events Giveaways & Rewards 1-Year Most Popular (Income Tax Deductible) Explore Plans Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
The Star
36 minutes ago
- The Star
13MP: Strategic clarity in an age of disruption
AS economic certainties are breaking apart at the seams by fragmentation, digital disruption and rising protectionism, the tabling of the 13th Malaysia Plan (13MP) under the Madani government could not have come at a more critical juncture. Where once there was predictability and stability, bolstered by robust competition, the global landscape is now dominated by intense strategic rivalry and geo-economic uncertainty. Long a trading nation and a highly open economy, Malaysia must navigate these treacherous waters, exposed to global headwinds, not least the Trump administration's re-imposition of tariffs. The current 19% duty on most Malaysian exports to the US, though a reduction from earlier announcements, reflects a difficult compromise. Exemptions for key sectors such as semiconductors soften the blow, but the overall message is clear: trade is becoming more politicised, and diversification is no longer optional but essential. Some have suggested that Malaysia's arrangement with the US bears little distinction from those secured by its regional peers, or worse, represents a form of quiet capitulation. Such critiques overlook a key reality: economic diplomacy in today's climate is no longer about extracting perfect outcomes, but about managing asymmetries wisely. Malaysia's approach has been guided by strategic calculus, not submission, and herein lies the difference. Malaysia has safeguarded critical policy space, including bumiputra affirmative action, protective tariffs for strategic industries such as automotive, and the continued issuance of Approved Permits (APs), all while ensuring continued dialogue with Washington. The 13MP responds to these realities with a forward-looking framework that positions the country for resilience and renewal. It outlines a vision of strategic autonomy rooted in structural reform, domestic capacity-building and constructive global engagement. Building strength for a digital and industrial future A central theme of the 13MP is the development of Made by Malaysia products, anchored in existing policy documents such as the New Industrial Master Plan 2030. In addition to prioritising research, commercialisation and innovation, the 13MP supports high-growth sectors, aims to attract high-impact investments, and strengthens the nation's talent base. This ambition is writ large in the commitment to artificial intelligence and digital transformation. Malaysia must move beyond backend assembly in global value chains. The RM10bil investment by Nvidia, partnering Khazanah Nasional, reflects international confidence in Malaysia's capacity to become a regional pivot for high-performance computing, AI infrastructure and data governance. Yet, this is only a beginning. The 13MP envisions nurturing home-grown innovation, making domestic firms more competitive and equipping Malaysians for the technological frontier. It advances these goals by strengthening industry-academia collaboration, supporting the AI ecosystem under the National AI Roadmap, and promoting agile governance through regulatory sandboxes. At its core, the 13MP is about economic, institutional and societal resilience. The focus is on value creation and long-term quality investment, where public spending and policy incentives serve strategic objectives, not the least being boosting domestic value capture and supporting high-impact sectors. As for the National Energy Transition Roadmap, gearing the nation towards a low-carbon, high-value economy, the kicker is in catalytic projects and investment opportunities in green hydrogen, solar manufacturing and grid modernisation. Energy resilience and environmental stewardship are crucial to ensure we aren't left at the starting block in the global green economy race while laying the foundation for new industrial ecosystems that align with long-term national interests. Reclaiming global relevance through economic diplomacy Malaysia's tradition of non-alignment remains a key advantage. Our credibility with both East and West, combined with a reputation for moderation and consistency, positions us to bridge divides in a fractured global order. The 13MP builds on this by encouraging deeper engagement with emerging markets, reinforcing commitment to multilateral platforms such as the Regional Comprehensive Economic Partnership, and reaffirming Malaysia's leadership role in Asean as well as participation in Brics. Economic diplomacy, in this regard, is not incidental but a core pillar of the 13MP, demonstrating the inextricable link between domestic reform and global positioning. By expanding trade relations with sub-Saharan Africa and Latin America and leveraging existing trade agreements, the 13MP seeks to fortify resilience in an era of shifting power and contested norms. Its call for fairness, predictability and sovereignty in digital and trade governance reflects long-term strategic interests. Still, the 13MP is only as strong as its execution. While Malaysia has never lacked for vision, the adage that between the ideal and the reality falls the shadow of incoherence and failure sometimes still rings true. Nevertheless, we take heart that the 13MP introduces mechanisms for inter-agency coordination, performance tracking and institutional accountability. This is vital considering that we were once dragged down by a system that prioritised form over substance. And, in order to truly appreciate the role of the 13MP in today's context, we must move beyond outdated critiques and assess what national planning means in an era of complexity and disruption. It has become fashionable among some commentators to dismiss Malaysia's five-year plans as relics of Soviet-style economic totalitarianism. But this ignores both the evolution of the planning process and the complexity of modern governance. Unlike Stalinist central planning, the 13MP does not attempt to micromanage the economy, nor does it presume to absolutely override market mechanisms. Instead, it provides strategic clarity in areas where the market alone cannot resolve collective dilemmas such as climate resilience, energy security, digital infrastructure and regional inequality. Clearly, Adam Smith's 'invisible hand' has remained largely invisible in times of economic turmoil. Intervention, where strategically planned and executed, is imperative. Most importantly, the 13MP is not a promise of overnight transformation. Real change demands political will, technocratic skill and broad societal alignment. It calls for the courage to move beyond antiquated paradigms and the discipline to commit to long-term thinking. In the end, the 13MP represents a new understanding of development. It is not about managing scarcity or distributing subsidies, but about unlocking potential, building strategic capacity and preparing for a future that will not wait. If we approach the implementation of the 13MP with the same earnestness and clarity with which it was conceived, Malaysia can do more than weather the global storm. We can reclaim our agency, shape our regional future and advance a model of shared prosperity rooted in resilience, inclusion and innovation. A tall order no doubt, but by no means unattainable. Datuk Prof Dr Mohd Faiz Abdullah Chairman of ISIS Malaysia
