Palm oil rose on Wednesday amid a rebound in crude oil prices and strong demand

Malaysian palm oil futures closed higher on Wednesday after declining for two consecutive sessions. The benchmark October contract on the Bursa Malaysia Derivatives Exchange gained 0.45%, or 21 ringgit, to 4,663 ringgit ($1,140.9) per ton.

The market was supported by bargain buying, a rebound in crude oil prices and strong physical demand from India. Additional support came from robust export performance, with cargo surveyors estimating that Malaysian palm oil exports during July 1–25 increased by 8.1% to 15.9% compared with the previous month.

Further gains, however, were limited by expectations of higher palm oil production in July and the absence of new B50 biodiesel allocations in Indonesia. A slightly stronger Malaysian ringgit also made palm oil more expensive for buyers using foreign currencies.

Crude oil prices climbed more than 3% amid escalating tensions in the Middle East and a decline in U.S. crude inventories. Higher energy prices improve palm oil’s competitiveness as a biodiesel feedstock, providing additional support to the market.

In related markets, the most-active Dalian soyoil contract fell 0.23%, while Dalian palm oil futures gained 0.64%. Meanwhile, European Commission data showed that since the start of the 2026/27 season, EU soybean imports have declined 39% to 0.56 mln tons, while palm oil imports have also fallen 39% to 0.13 mln tons.

Tags: prices, palm oil