Malaysian palm oil futures were little changed on Tuesday

Palm oil prices rose slightly after a morning decline amid mixed signals. While weak export supplies are weighing on vegetable oil prices, uncertainty surrounding the Strait of Hormuz continues to support crude and biofuel prices, according to a research note from Kenanga Futures. Meanwhile, potential bargain buying opportunities following the recent correction are providing additional support, although lingering concerns about production growth could limit the upward momentum, the note notes. Kenanga sets support and resistance levels for the July futures contract at 4,500 and 4,650 ringgit, respectively.

Malaysian palm oil futures were little changed on Tuesday, as lower Dalian palm oil prices offset higher crude prices.

The benchmark July palm oil contract FCPO1 on the Bursa Malaysia Derivatives Exchange rose 3 ringgit, or a slight 0.07%, to close at 4,537 ringgit (US$1,148.90) per metric ton. The contract had fallen 1.37% on Monday.

According to a Kuala Lumpur-based trader, palm oil futures came under pressure during Asian trading hours due to lower Dalian palm olein prices.

“The benchmark July contract broke the key psychological level of 4,500 ringgit, triggering fresh selling pressure and testing the intraday low of 4,482 ringgit,” the trader added.

The most actively traded soybean oil contract in Dalian rose 0.14%, while the palm oil contract in the same market fell 0.59%. Soybean oil prices on the Chicago Mercantile Exchange strengthened 0.17%.

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

Oil prices rose nearly 3%, continuing a rally that began last session, as efforts to end the war between the United States and Iran appear to have stalled: the crucial Strait of Hormuz remains largely closed, depriving markets of key energy resources in the Middle East.

Higher palm oil futures prices make it a more attractive feedstock for biodiesel production. The ringgit strengthened 0.03% against the dollar, making the commodity more expensive for buyers holding foreign currency.

Seger Budiarjo, director of Indonesia’s state-owned palm oil company Agrinas Palma Nusantara, said he expects crude palm oil production to reach approximately 2 million tonnes in 2026, nearly double the previous estimate of 1.07 million tonnes.

According to experts at Cargo Assessment, Malaysian palm oil product exports from April 1 to 25 decreased by 15.7-16.8% compared to the previous month.

Tags: prices, palm oil