Palm oil market rises following competing oils

Malaysian palm oil futures rose more than 3% on Wednesday amid strengthening prices of rival edible oils and concerns over output, while increased buying ahead of a major industry conference also supported prices.

The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange rose 169 ringgit, or 3.75%, to close at 4,673 ringgit ($1,052.95) per metric ton, after hitting an intraday high of 4,695 ringgit, a two-month high.

The palm oil market is on a positive trajectory in unison with gains in Dalian and Chicago markets, analysts at Selangor-based brokerage Pelindung Bestari said.

Dalian’s most-active soybean oil contract rose 0.84%, while the palm oil contract climbed 1.68%. Soybean oil on the Chicago Mercantile Exchange (CBOT) rose 1.63%.

According to OleoScope data, the price of soybean oil (Daylian) with February delivery on 2/19/2025 was $1110.21/t, up $28.66/t from the previous value on 2/18/2025. The palm oil contract (FOB Malaysia) with delivery for February was at $1134.30/mt, up $32.34/mt from the previous day’s value.

Palm oil follows the price fluctuations of competing edible oils as it competes for a share of the global vegetable oil market. Oil prices rose amid concerns over oil supply disruptions in the U.S. and rf, and as markets await clarity on the Ukraine peace talks. Higher crude futures make palm a more attractive feedstock option for biodiesel.

Soybean imports into the European Union for the 2024-2025 season, which began in July, reached 8.62 million tons by Feb. 16, up 11 percent from the previous year, while palm oil imports totaled 1.78 million tons, down 21 percent.

The ringgit, Palma’s trading currency, strengthened 0.11% against the US dollar, making the commodity slightly more expensive for buyers holding foreign currency.

Tags: prices, palm oil