Malaysian palm oil futures jumped more than 3% on Wednesday

According to David Ng, a trader at Iceberg X in Kuala Lumpur, crude palm oil prices rose after trading resumed following the recent public holidays, supported by high crude and soybean oil prices. He also notes that the expectation of lower production in the coming weeks is supporting positive sentiment in the markets. Ng forecasts crude palm oil prices to strengthen above 4,500 ringgit per tonne, facing resistance at 4,750 ringgit per tonne.

Malaysian palm oil futures rose more than 3% on Wednesday, reaching a four-week high, supported by rising Chicago soybean oil prices, although profit-taking limited further gains.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange rose 140 ringgit, or 3.09%, to 4,675 ringgit (US$1,171.68) per metric ton, its highest closing price since May 5. The contract had fallen 0.04% in the previous session.

The market has shown gains since the holidays, largely due to stronger prices for competing oilseeds, particularly Chicago soybean oil, a Kuala Lumpur trader said, adding that profit-taking curbed further gains.

The most-active Dalian soybean oil contract rose 0.25%, while the CPO1 palm oil contract rose 0.43%. Soybean oil prices on the Chicago Mercantile Exchange rose 1.3%.

Palm oil is tracking the price dynamics of competing edible oils as it competes for share in the global vegetable oil market.

Oil prices rose more than 2% on Wednesday, extending the previous session’s gains, amid renewed fighting in the Middle East and little progress in negotiations between Tehran and Washington.

Strengthening oil futures are making palm oil a more attractive option for biodiesel feedstock.

The ringgit, the currency used for palm oil trading, weakened 0.68% against the dollar, making the commodity cheaper for buyers holding foreign currency.

India’s palm oil imports in May rose slightly from a four-month low the previous month but remained below average as refiners switched to competing soybean oil after palm oil’s price advantage over rival oils narrowed, five dealers reported.

Indonesia exported 7.72 million tonnes of crude and refined palm oil in the first four months of 2026, up 20.38% from a year earlier, according to the statistics bureau.

Tags: prices, palm oil