The rise in prices of Malaysian palm oil on Wednesday was due to increased heat and competition between steel and currencies.

Futures for Malaysian palm oil continued their third positive trend on Wednesday, driven by the intensifying hot weather in the important producing country and rising prices of competing oils. However, this growth was hindered by the increase in the Malaysian ringgit quotes. On the Malaysian Derivatives Exchange, the basic contract for palm oil delivery in July increased by 5 ringgit, or 0.13%, to 3976 ringgit (833.02 US dollars) per metric ton by midday. The increase in palm oil prices, according to Anilkumar Bagani, head of the Sunvin research group in Mumbai and an expert in vegetable oils, is related to the rise in CBOT soybean oil and Chinese vegetable oil prices in previous night sessions and in Asian trading Wednesday. This was reported by Reuters. The contract for soybean oil in Dalian outperformed palm oil in growth, increasing by 0.92%, while palm oil added 0.86%. Soybean oil prices on the Chicago Mercantile Exchange slightly decreased by 0.02% after rising by 0.48% on Tuesday. Palm oil prices depend on changes in prices of related oils, as they compete with each other in the international vegetable oil market. Oil prices rose slightly on Wednesday after industry data showed an unexpected drop in U.S. crude oil inventories last week. This is a positive signal for demand, but markets are also cautiously watching for military actions in the Middle East. The increase in palm oil prices may be related to unfavorable weather, the recovery of exports, and the strengthening of competitors in the market. The strengthening of crude oil futures makes palm oil a more attractive raw material option for biodiesel production. On Tuesday evening, Malaysia's meteorological agency declared a level 1 heatwave warning in more than 20 areas of the country. This unfavorable phenomenon negatively affects the yield of palm trees. The Malaysian ringgit, the country's trading currency, strengthened by 0.1% against the US dollar. A stronger ringgit makes palm oil less attractive to foreign currency investors. Malaysian small farmers growing oil palms are recommended to replant old palm trees, which contributes to increasing productivity in the country's oil sector, as reported by the Malaysian company Bernama.