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Malaysian palm oil futures rose on Friday, snapping a three-week losing streak, buoyed by gains in competing edible oils that lifted market sentiment.
The benchmark palm oil contract for July delivery (FCPO1!) on Bursa Malaysia Derivatives climbed 22 ringgit, or 0.55%, to close at 4,058 ringgit ($928.60) per tonne.
The contract posted a weekly gain of 2.09%.
A Kuala Lumpur-based trader said crude palm oil contracts drew support from strength in rival oilseeds overnight, particularly soybean oil on the Chicago exchange, amid optimism over export demand for US soybean oil.
The most-active soybean oil contract on the Dalian exchange rose 1.28%, while the palm oil contract there added 2%.
Meanwhile, soybean oil prices on the Chicago exchange (ZL1!) climbed 1.84%.
Palm oil tracks price movements in competing edible oils, as it competes with them for a share of the global vegetable oil market.
Crude Oil Prices Fall
Oil prices fell and were on track for a weekly decline of more than 2% amid concerns over a supply glut and uncertainty surrounding US-China tariff talks.
Weaker crude oil prices made palm oil a less attractive feedstock option for biodiesel production.
The Malaysian ringgit (USDMYR), the currency in which palm oil is traded, remained steady against the US dollar.
EU Palm Oil Imports Expected To Decline
The European Commission expects the EU's palm oil imports for the 2025-2026 season to reach around 2.5 million tonnes, down from last month's forecast of 3.0 million tonnes.
India Starts Ramping Up Palm Oil Purchases
Four traders said India has begun increasing its palm oil purchases after a five-month lull, as a price correction made palm oil cheaper than rival soybean oil, prompting refiners to place fresh orders to rebuild stocks.
Source: Reuters