Palm Oil Jumps to Over 4-Month High

Malaysian palm oil futures surged 3.7% to around MYR 4,375 per tonne on Monday, the highest since October, driven by expectations that soaring crude oil prices would boost demand for biodiesel feedstocks, alongside support from a weaker ringgit and firmer edible oils in Dalian and Chicago. Demand prospects also improved after February imports rose by top buyer India rose 10.1% mom to a six-month high in February, aided by wider price discounts to rival oils. Meanwhile, Reuters projected inventories likely fell for a second month to a four-month low in February. In China, another key buyer, consumer prices rose in February on Lunar New Year demand, potentially supporting food consumption. However, upside was capped as cargo surveyors estimated February exports dropped 21.5%–22.5% from January despite Eid al-Fitr restocking. Traders now await Malaysian Palm Oil Board data later this week for clearer supply signals.

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.