Palm Oil Heads for Biggest Weekly Jump Since August

Malaysian palm oil futures climbed around 1.5% to above MYR 4,250 per tonne on Friday, extending gains from the prior session and nearing a five-week high, supported by a weaker ringgit and strength in edible oils on the Dalian exchange. Contracts are on track for a weekly gain of about 5.5%, the strongest since mid-August, as crude oil prices surged amid the Middle East conflict, disrupting energy flows. Demand prospects also improved after palm oil imports in top consumer India climbed 10.1% mom in February to a six-month peak, aided by wider discounts to rival oils. Meanwhile, Reuters projected Malaysia’s stocks fell for a second month to a four-month low, with seasonal output declines outweighing weaker exports. Still, weaker exports capped momentum, with cargo surveyors noting February shipments down 21.5%–22.5% from January despite Eid al-Fitr buying. Caution also grew ahead of key data next week in China, the main buyer, including CPI and PPI figures, as well as trade readings

Malaysian palm oil futures hovered above MYR 4,200 per tonne on Thursday, swinging from the prior session’s modest dip to notch a one-month peak. Firmer soyoil prices on the Chicago market boosted sentiment, along with strength in energy markets as prolonged Middle East tensions raised fears that crude prices could stay elevated. Demand prospects also strengthened after palm oil imports in top buyer India rose 10.1% mom in February to a six-month top, aided by wider discounts to rival edible oils. Meantime, Reuters projected Malaysia’s stocks fell for a second month to a four-month low in February, with seasonal output declines outweighing weaker exports. Still, gains were capped by cargo surveyors noting February shipments down 21.5%–22.5% from January despite Eid al-Fitr buying. In China, a key consumer, the 2026 GDP growth target was set at a milder 4.5%–5%, the first downgrade since 2023, stoking concerns that slower momentum could weigh on vegetable oil demand, including palm oil.

Malaysian palm oil futures slipped below MYR 4,180 per tonne on Wednesday, snapping a three-session winning streak amid weaker soyoil prices on the Dalian and Chicago markets. Profit-taking added pressure after contracts hit a near four-week high. Sentiment was further hit by softer export data, with cargo surveyors noting February shipments fell 21.5%–22.5% from January, despite seasonal demand ahead of Eid al-Fitr. In key buyer China, official data showed weaker February activity, partly due to an extended Spring Festival break. Still, losses were capped by a softer ringgit and firmer crude oil prices amid escalating Middle East tensions. In India, the world’s largest consumer, February palm oil imports rose 10.1% mom to a six-month high of 844,000 tonnes, supported by a wider discount to rival oils. Meanwhile, Reuters projected Malaysia’s palm oil stocks likely fell for a second straight month to a four-month low in February, as seasonal output declines outweighed slower exports.