Malaysian palm oil futures posted a second straight weekly gain

Palm oil prices closed unchanged, while the medium-term momentum in the palm oil market is strengthening, according to Abdul Hamid, director of sales at Pakistan-based Manzoor Trading. He said the combination of government liquidity support, accelerating B50 growth, and continued rupee weakness creates a bullish foundation ahead of the third quarter.

Malaysian palm oil futures edged lower on Friday but still posted a second consecutive weekly gain, up 1.09% for the week.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange fell 2 ringgit, or 0.04%, to 4,535 ringgit (US$1,144.34) per metric tonne at the close.

Futures trading will be closed on June 1 and 2. Trading will resume on Wednesday, June 3.

The most active Dalian soybean oil contract rose 0.75%, while the CPO1 palm oil contract added 0.37%. Soybean oil prices on the Chicago Mercantile Exchange rose 0.1%.

Palm oil prices follow the price movements of competing edible oils as it fights for share in the global vegetable oil market.

Indonesia set the reference price of crude palm oil for June at US$1,029.51 per metric ton, the Commerce Ministry announced on Friday, down from US$1,049.58 per ton in May.

The Indonesian government met with palm oil farmer groups on Friday to discuss concerns about the sharp drop in fresh fruit prices, which farmers say is due to uncertainty over a new plan to route all palm oil exports through a state agency.

According to the European Commission, soybean imports into the European Union for the 2025/26 season, which began in July, reached 11.95 million tonnes as of May 24, down 8% from the same period last year, while palm oil imports fell 4% to 2.55 million tonnes.

Tags: prices, palm oil