Price of palm oil rose on Friday

Palm oil prices rose, likely due to speculation after a recent decline. Higher soybean oil prices on the Chicago Mercantile Exchange also supported vegetable oil prices, Kenanga Futures reported. However, concerns persist about weakening export demand and a stronger ringgit, which could dampen foreign buyer interest, the report said. The brokerage sets support and resistance levels for the May futures contract at 3,955 and 4,095 ringgit, respectively.

Malaysian palm oil futures rose slightly on Friday, boosted by gains in the Dalian vegetable oil market, but then posted their biggest monthly decline in 10 months due to weak exports and a stronger ringgit.

The benchmark FCPO1 palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange rose 35 ringgit, or 0.87%, to 4,040 ringgit (US$1,039.09) per metric tonne at the close of trading, after falling 1% on Thursday.

The contract fell 4.47% in February, marking its steepest monthly decline since April 2025.

“Palm oil futures on Bursa Malaysia opened with a gap up, following a rally in Chicago soybean oil futures the previous day,” said Anilkumar Bagani, head of commodity research at Mumbai-based brokerage Sunvin Group.

The most actively traded soybean oil contract in Dalian remained unchanged after rising 0.17% early in the session, while palm oil prices rose 0.11%. Soybean oil prices on the Chicago Mercantile Exchange rose 0.03% after rising 1.8% overnight.

Palm oil prices follow the price movements of competing edible oils as it competes for share in the global vegetable oil market.

According to independent inspection company AmSpec Agri Malaysia, Malaysian palm oil exports fell 16.1% from the previous month between February 1 and 25. Intertek Testing Services estimated a 12.1% decline.

The Malaysian ringgit, the contract currency used for the trade, weakened 0.15% against the US dollar, but remained near its highest level since April 2018. In February, it strengthened 1.3% against the dollar for the seventh consecutive month.

The strengthening ringgit makes palm oil more expensive for foreign currency holders.

Palm oil company First Resources said it paid the Indonesian government $5.6 million “in connection with the transfer” of land plots to the government.

According to Reuters technical analyst Wang Tao, the palm oil price could break the resistance level of 4,058 ringgit per tonne and rise to the 4,076-4,095 ringgit range.

Tags: prices, palm oil