Malaysian palm oil futures continued their upward trend for the fifth consecutive session on Wednesday as stocks of Malaysian palm oil dropped to a four-month minimum.

The benchmark contract for March deliveries on the Bursa Malaysia Derivatives Exchange rose by 27 ringgit, or 0.72%, to 3,759 ringgit ($810.30) per metric ton at the closing.

Data from the Malaysian Palm Oil Board (MPOB) on Wednesday showed that stocks fell by 4.64% on a monthly basis to 2.29 million tons at the end of December, marking the lowest level since August.

Production is expected to continue decreasing amid the seasonal cycle, reported Anilkumar Bagani, Head of Research at the Indian Sunvin Group.

“Palm oil is currently seeking support from the soybean, sunflower, and crude oil markets,” according to Reuters. The most active soybean oil contract in Dalian rose by 2.30%, while the palm oil contract increased by 3.29%. Soybean oil prices on the Chicago Board of Trade fell by 0.21%.

Changes in prices of related oils influence palm oil as they compete for market share in the global vegetable oil market.

In 2023, Indonesia approved the replanting of 53,012 hectares (130,995.5 acres) of oil palm trees on lands owned by small farmers under a subsidy program, as shown by data from the country’s palm oil production financing agency on Wednesday.

Meanwhile, Malaysian palm oil exports from January 1-10 decreased by 9.8% to 349,075 tons from 386,986 tons shipped during December 1-10, according to independent inspection company AmSpec Agri Malaysia.

Exports from January 1-10 fell by 3.9% to 354,465 tons from 368,990 metric tons during December 1-10, reported Intertek Testing Services on Wednesday.

Oil prices rose by approximately 2% on Tuesday as the crisis in the Middle East and disruptions in supplies in Libya offset heavy losses from the previous day.

The Malaysian Ringgit remained unchanged against the US Dollar.

(1 US Dollar = 4.6390 Ringgit)