Palm oil prices edged lower on Friday after weekly gains

Malaysian palm oil futures ended the week higher despite posting a modest decline on Friday. The benchmark October contract on the Bursa Malaysia Derivatives Exchange fell by 12 ringgit, or 0.26%, to 4,594 ringgit ($1,123) per ton, but still gained 1.79% over the week.

The contract traded within a narrow range of 4,575–4,608 ringgit per ton on Friday. According to market traders, prices are currently consolidating as participants await fresh fundamental catalysts to determine the market’s next direction.

Palm oil prices were pressured by mixed performance in competing vegetable oils. Dalian soyoil futures declined 0.57% and palm oil futures fell 0.26%, while CBOT soyoil futures rose 1.35%. Palm oil typically follows movements in rival vegetable oils as they compete for market share in the global edible oils market.

At the same time, higher crude oil prices provided support. Oil prices climbed about 2% following escalating tensions between the United States and Iran, increasing concerns over shipping disruptions in the Persian Gulf and the Red Sea. Stronger crude oil prices improve palm oil’s competitiveness as a feedstock for biodiesel.

Weather risks also remain supportive for the market. The U.S. Climate Prediction Center reported that El Niño has strengthened over the past month and is expected to intensify through the end of 2026 and persist into early 2027. Reuters technical analyst Wang Tao said palm oil prices could retest the July 9 high of 4,630 ringgit per ton after breaking above the upper trendline.

Tags: prices, palm oil