Palm Oil Rises on Stronger Rival Oils and Crude Oil

Palm Oil Futures Rise on Stronger Rival Oils and Crude Oil

Malaysian palm oil futures rose on Thursday as trading resumed after a holiday, with stronger rival edible oils and crude oil supporting the market.

Market Data

The benchmark palm oil contract (FCPOc3) for August delivery on the Bursa Malaysia Derivatives Exchange gained 38 ringgit, or 0.85%, to 4,534 ringgit ($1,142.07) a metric ton in early trade.

Supporting Factors

Dalian's most-active soyoil contract (DBYcv1) rose 0.46%, while its palm oil contract CPO1! added 0.77%. Soyoil prices on the Chicago Board of Trade (BOcv1) were up 0.17%. Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market.

Oil prices jumped about 2% in early trading after Reuters reported fresh U.S. strikes overnight on an Iranian military site. Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

The ringgit, palm's currency of trade, weakened 0.3% against the dollar, making the commodity cheaper for buyers holding foreign currencies.

Other 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, European Commission data showed.

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