Palm Oil Rises on Firmer Crude, Rival Oil Prices

Palm Oil Prices Rise

Malaysian palm oil futures rose on Thursday, posting gains for the second straight session, as firmer crude oil prices and rival edible oils supported the market. The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange rose 39 ringgit, or 0.87%, to 4,535 ringgit per metric ton.

Energy and Oil Market Developments

Analysts noted that prices moved in unison with energy prices, Chinese vegetable oil futures, and Chicago soyoil. Market chatter surrounding the super El Nino phenomenon has made traders cautious, supporting palm oil prices.

Dalian's most-active soyoil contract rose 1.07%, while its palm oil contract added 0.96%. Soyoil prices on the Chicago Board of Trade were up 0.54%.

Impact of Crude Oil Prices

Oil prices jumped more than 2% after Iran's Revolutionary Guards said they had targeted a U.S. airbase. Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

The ringgit, palm's currency of trade, weakened 0.38% against the dollar, making the commodity cheaper for buyers holding foreign currencies.

Demand and Regulatory Developments

European Union soybean imports for the 2025/26 season reached 11.95 million tons by May 24, down 8% from a year earlier, while palm oil imports were down 4% to 2.55 million tons.

Indonesia's finance minister said Wilmar International and the Musim Mas Group are among palm oil companies being probed for suspected under-invoicing of exports.