Palm Oil Futures in Malaysia Rebound, Ending Losing Streak

KUALA LUMPUR: Palm oil futures in Malaysia experienced a rise on Friday, effectively halting a three-week period of declines, driven by stronger performance in competing edible oils which improved market sentiment.

The benchmark palm oil contract, scheduled for July delivery on the Bursa Malaysia Derivatives Exchange, saw an increase of 22 ringgit, or 0.55%, reaching 4,058 ringgit ($928.60) per metric ton at the session’s close.

The contract value increased by 2.09% over the course of the week.

According to a trader based in Kuala Lumpur, crude palm oil futures benefited from the overnight strength of rival oilseeds, notably Chicago soyoil, fueled by optimism regarding export demand for soyoil from the United States.

On the Dalian Commodity Exchange, the most active soyoil contract went up by 1.28%, while the palm oil contract increased by 2%. Soyoil prices on the Chicago Board of Trade showed a gain of 1.84%.

Palm oil’s price tends to follow the movements of other edible oils, as they are competitive within the global vegetable oils market.

Oil prices decreased and were on track for a weekly reduction of more than 2%, influenced by concerns about oversupply and uncertainty regarding tariff discussions between the U.S. and China.

Palm oil prices closed higher due to bargain hunting and improved market sentiment.

Weaker crude oil futures make palm oil a less appealing option for biodiesel production.

The ringgit, which is the currency used for palm oil trade, remained stable against the U.S. dollar.

The European Commission projects EU palm oil imports for the 2025-2026 period to be 2.5 million tons, a decrease from the 3.0 million tons projected last month.

After a five-month slowdown, India has started to increase its palm oil acquisitions, as price adjustments have made it more economical than soyoil, prompting refiners to place orders to restock their inventories, according to several dealers.