Price of palm oil increased on Friday

According to David Ng, a trader at Iceberg X in Kuala Lumpur, prices are supported by strong demand. He also noted that inventory levels are likely to decline in the coming weeks, which will also support palm oil prices. Ng forecasts support for palm oil prices at 4,800 ringgit per tonne and resistance at 4,980 ringgit per tonne.

Malaysian palm oil futures rose nearly 1% on Friday, recording their fifth consecutive weekly gain, driven by expectations of inventory draws, Indonesia’s plans to introduce B50 biodiesel, and escalating tensions in the Middle East.

The benchmark FCPO1 palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange rose 47 ringgit, or 0.98%, to 4,838 ringgit (US$1,201.09) per metric ton, reaching its highest closing level since December 13, 2024. This week, the contract has risen 4.47%.

A decline in Malaysian inventories at the end of March, the possibility of Indonesia mandating the use of B50 biodiesel, high oil price volatility, and uncertainty over US President Donald Trump’s policies are supporting high prices, said Sandeep Singh, director of Kuala Lumpur-based consultancy and trading firm The Farm Trade.

He added that after a long wait, some buyers have also begun to return to the market, although prices above 4,900 ringgit are considered too high.

According to a Reuters poll, Malaysia’s palm oil inventories likely fell by the most in three years in March, reaching their lowest level since July last year, as a sharp rise in exports more than offset a modest increase in production.

The Malaysian Palm Oil Board (MPOB) is scheduled to release supply and demand data for March on April 10.

Oil prices rose sharply overnight, with U.S. crude rising more than 11% and Brent crude nearly 8% amid volatile trading on Thursday. Oil markets are closed Friday for a public holiday.

The most actively traded Dalian soybean oil contract rose 0.53%, while the palm oil contract rose 0.59%. The Chicago Mercantile Exchange is closed for a public holiday.

Palm oil prices are tracking the price movements of competing edible oils as it fights for share in the global vegetable oil market.

The ringgit strengthened 0.2% against the dollar, making the commodity more expensive for buyers holding foreign currency.

India’s palm oil imports fell nearly 19% in March to a three-month low as rising tropical oil prices, driven by rising energy prices, prompted refineries to reduce purchases in anticipation of a correction, according to five dealers.

Tags: prices, palm oil