KUALA LUMPUR: Malaysian palm oil futures rose on Friday, snapping a three-week losing streak, as stronger rival edible oils boosted sentiment.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange gained 22 ringgit, or 0.55%, to 4,058 ringgit ($928.60) a metric ton at the close.
The contract rose 2.09% this week.
Crude palm oil futures were buoyed by overnight strengths in rival oilseeds, particularly the Chicago soyoil, following optimism about export demand for United States’ soyoil, a Kuala Lumpur-based trader said.
Dalian’s most-active soyoil contract rose 1.28% while its palm oil contract added 2%. Soyoil prices on the Chicago Board of Trade were up 1.84%.
Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Oil prices fell and were set for a weekly decline of over 2% on the back of oversupply concerns and uncertainty around tariff talks between the U.S. and China.
Palm oil ends higher on bargain hunting, stronger sentiment
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The ringgit, palm’s currency of trade, remained unchanged against the U.S. dollar.
The European Commission forecasts EU palm oil imports in 2025-2026 at 2.5 million tons compared to 3.0 million tons last month.
India has started raising palm oil purchases after a lull of five months, as a correction in prices has made the tropical oil cheaper than rival soyoil, encouraging refiners to place orders to replenish inventories, four dealers said.