Palm oil makes more than 3% weekly gain for highest close in 14 weeks

JAKARTA: Malaysian palm oil futures closed higher on Friday and posted a third consecutive weekly gain, supported by strength in rival edible oils in Dalian and Chicago.

The futures also booked a 3.40% weekly gain and the highest close in 14 weeks.

The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange gained 106 ringgit, or 2.52%, to 4,316 ringgit ($1,017.92) a metric ton at the close.

“Palm oil prices rose supported by strength in Chicago soyoil and Dalian palm and soyoil futures, alongside expectations of a weaker ringgit due to a strong U.S. dollar,” said Darren Lim, a commodities strategist at Singapore-based brokerage Phillip Nova.

Dalian’s most-active soyoil contract rose 1.34%, while its palm oil contract increased 2.28%. Soyoil prices on the Chicago Board of Trade were up 1%.

Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.

Oil prices edged higher on Friday, heading for a small weekly loss, as investors weighed new European Union sanctions against Russia.

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

Malaysian palm oil lower on profit-taking

According to independent inspection company AmSpec Agri Malaysia, exports of Malaysian palm oil products for the July 1-15 period fell 5.3% from June 1-15, while cargo surveyor Intertek Testing Services reported a 6.2% drop.

Meanwhile, Malaysia has hiked its August crude palm oil reference price, raising export duties to 9% from 8.5% in July.

Indonesia’s biodiesel consumption reached 7.42 million kilolitres this year, as of July 16, 47.5% of 2025’s allocation.

Indonesia’s plantation fund agency estimates levies collected on palm oil will touch 30 trillion rupiah ($1.84 billion) this year, enough to finance the country’s biodiesel mandate.