Palm oil market shows steady price growth

The palm oil market is showing a modest but steady price increase, driven by fundamentals rather than short-term speculation, Directors Talking.

According to analysts, the current dynamics do not reflect short-term fluctuations but rather sustainable changes in global supply chains. Recent movements in Malaysian palm oil futures show a return to a more sustainable position after the recent downturn.

Malaysian palm oil futures for September delivery have settled at ~MYR4,000/t, supported by active buying by key importers.

Traders have seen steady demand in June, particularly from price-sensitive markets rebuilding stocks after a period of reduced buying. Thus, India, the largest importer, increased import volumes to a six-month high in May, but in recent weeks there has been a slowdown in the pace of orders due to the strengthening ringgit, which increases the cost of contracts for foreign buyers.

Experts also draw attention to the continued price advantage over soybean oil, which supports demand in Asia and Africa. However, they remind, further growth may face resistance when reaching parity with alternative vegetable oils.

According to OleoScope, on 26.06.2025, the price of RBD palm kernel oil (FOB Malaysia) for delivery in June amounted to $ 1,701.45 per tonne, which is $ 19.90 per tonne higher than the previous value of 25.06.2025 ($ 1,681.55 per tonne). This is the maximum value in a week.

Tags: prices, palm oil