Palm oil prices rose on Wednesday

Palm oil prices rose amid ongoing concerns about supply disruptions. Potential El Niño conditions, expected to persist until at least the end of 2026, could lead to higher crude palm oil prices, notes Citi analyst Gan Huang Wen. Crude palm oil prices previously rose 5% during the event and 17% by its end, he notes. However, the conflict’s impact on the Middle East market and oil price trends remain uncertain factors for palm oil prices, notes Galaxy Futures. Palm oil inventories in Malaysia remain high, and investors should monitor the situation around major palm oil producers, Galaxy adds.

Malaysian palm oil futures pared initial losses and closed higher for the second consecutive day on Wednesday, following rising prices for crude oil and competing vegetable oils.

The benchmark FCPO1 palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange rose 42 ringgit, or 0.93%, to close at 4,578 ringgit (US$1,158.99) per metric tonne.

Futures fell as low as 4,491 ringgit in intraday trading. The most-active Dalian soybean oil contract rose 0.39%, while the CPO1 palm oil contract added 0.29%. Soybean oil prices on the Chicago Mercantile Exchange rose 0.77%.

Palm oil follows the price movements of competing vegetable oils, competing for share in the global vegetable oil market.

Oil prices rose nearly 3% on Wednesday, with Brent crude hitting a one-month high amid media reports that the US will extend the blockade of Iranian ports, likely worsening supply disruptions from the key Middle East region.

Strengthening oil futures are making palm oil a more attractive biodiesel feedstock option.

Meanwhile, Indonesia’s palm oil production could fall by 2 million metric tons this year compared to 2025 levels due to El Niño-related dry weather and high fertilizer prices caused by the war in the Middle East, the head of the country’s palm oil association said Wednesday.

Freight experts estimate that Malaysian palm oil exports from April 1 to 25 fell by 15.7-16.8% compared to the previous month.

The ringgit weakened 0.03% against the dollar, making the commodity slightly cheaper for buyers holding foreign currency.

Tags: prices, palm oil