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Malaysian palm oil futures closed higher on Friday, reflecting a brief recovery from earlier losses, but still posted a second straight weekly decline as expectations of higher production and stocks limited the gains.
The benchmark palm oil contract for July delivery on Bursa Malaysia Derivatives rose 14 ringgit, or 0.37%, to close at 3,815 ringgit ($888.45) per tonne.
The contract fell 1.7% for the week.
Crude palm oil futures traded lower earlier in the session, as concerns over rising production and stocks in the coming weeks weighed on market sentiment, according to David Ng, a proprietary trader at Kuala Lumpur-based Iceberg X Sdn Bhd.
A Reuters survey estimated that Malaysia's palm oil stocks rose in April for a second consecutive month, as the industry approaches its peak production season, with output expected to increase notably in the second half of the year.
The Malaysian Palm Oil Board (MPOB) will release its monthly supply and demand data on 13 May 2025.
Palm oil fell earlier in the week on competition from rival oils, as the market awaits May production forecasts.
The most active soyoil contract on the Dalian Commodity Exchange rose 0.44%, while its palm oil contract added 0.28%. Soybean oil prices on the Chicago Board of Trade (CBOT) also gained 0.5%.
Palm oil tracks price movements of competing edible oils as it competes for a share of the global vegetable oils market.
The ringgit, palm oil's trading currency, weakened 0.4% against the dollar, making the commodity cheaper for buyers holding foreign currencies.
Oil prices rose and were on track for a weekly gain, amid signs of easing trade tensions between the world's top two oil consumers, China and the United States, and after Britain announced a "breakthrough" trade deal with the United States.
Stronger crude oil futures also made palm oil a more attractive feedstock for biodiesel production.
Source: Reuters