Palm Oil Set for Second Consecutive Weekly Gain

Malaysian palm oil futures rose around 1% to near MYR 4,600 per tonne on Friday, extending gains for a third straight session amid a weaker ringgit and strength in edible oils on the Dalian market. Sentiment was further buoyed by robust export demand, with cargo surveyors estimating that March 1–10 shipments surged by 37.9% to 45.3% from February, driven by stronger buying during Ramadan and ahead of Eid. In India, the world’s largest buyer, palm oil imports climbed 11% to a six-month high in February as a wider discount to competing oils encouraged refiners to boost purchases and cut sunflower oil imports. Separately, Malaysia has raised its April crude palm oil reference price, lifting the export duty to 9.5%, according to a circular on the Malaysian Palm Oil Board website. The market is on track for a second weekly gain of around 5% so far, supported by accelerated road tests of B50 biodiesel blend in top producer Indonesia, expected for mid-year rollout.

Malaysian palm oil futures jumped more than 1.5% to near MYR 4,600 per tonne on Thursday, marking solid gains for the second straight session amid a weaker ringgit, firmer edible oils in Dalian and Chicago markets, and a surge in crude oil prices. Export optimism added support, with cargo surveyors reporting March 1–10 shipments soared between 37.9%–45.3% from February, driven by stronger demand during Ramadan and ahead of Eid. Supply data reinforced the momentum, as February inventories fell 3.9% to a four-month low of 2.70 million tonnes, while crude palm oil output plunged 18.6% to 1.28 million tonnes. Demand from top buyer India also improved, with February imports rising 11.0% to 844,000 tonnes, the highest in six months, on wide discounts versus rival oils. Turning to Indonesia, the world’s largest producer, authorities accelerated road tests for its B50 biodiesel blend, a contingency measure against potential crude supply shocks linked to Middle East tensions.

Malaysian palm oil futures hovered around MYR 4,450 per tonne on Wednesday, recovering from the prior session’s sharp drop as a weaker ringgit and firmer Chicago soyoil prices supported sentiment. Bargain hunters also stepped in after prices hit a 4-1/2-month low. Export prospects further boosted sentiment, with shipments of palm oil products for March 1–10 estimated to have surged 37.9%–45.3% from the same period in February, reflecting strong Ramadan and Eid demand. Monthly data from the Malaysian Palm Oil Board showed February stocks fell 3.9% to a four-month low of 2.70 million tonnes, while crude palm oil output slumped 18.6% to 1.28 million tonnes. Separately, Indian buyers increased purchases amid concerns that soyoil and sunflower oil shipments could be disrupted by Middle East tensions. Gains were capped, however, as Indonesia, the world’s top producer, considered accelerating its B50 biodiesel mandate, which could tighten export supply.