Malaysian Palm Oil Prices Rise for Second Session, Reach RM4,582 Per Tonne

KUALA LUMPUR — Malaysian palm oil futures climbed for a second consecutive trading session, with prices reaching RM4,582 per tonne, supported by rising vegetable oil markets and stronger global energy prices.

During trading on the Bursa Malaysia, the benchmark FCPOc3 palm oil contract for May 2026 delivery recorded an increase of about 83 ringgit, or 1.84 per cent, bringing the price to RM4,582 per tonne. Earlier in the session, the contract briefly reached a high of RM4,628 per tonne, reflecting strong buying momentum in the market.

The rally in palm oil prices was largely driven by positive movements in global vegetable oil markets. On the Dalian Commodity Exchange in China, soybean oil prices rose more than 2 per cent, while palm oil prices gained around 3.5 per cent. Meanwhile, soybean oil contracts on the Chicago Board of Trade also registered gains of more than 1 per cent. These developments helped support sentiment in the palm oil market, as the commodity competes directly with other vegetable oils for global market share.

Another factor contributing to the rise in palm oil prices was the weakening of the Malaysian ringgit against the US dollar. The currency fell by about 0.38 per cent, making Malaysian palm oil cheaper for overseas buyers and encouraging stronger export demand.

Higher crude oil prices have also played a key role in supporting the palm oil market. The ongoing geopolitical tensions in the Middle East have pushed global energy prices higher, increasing the attractiveness of palm oil as a feedstock for biodiesel production. As crude oil becomes more expensive, alternative fuels such as palm-oil-based biodiesel become more economically viable.

In addition, expectations of increased demand for biodiesel have boosted market optimism. Indonesia, the world’s largest palm oil producer, is accelerating trials for its B50 biodiesel programme, which involves blending 50 per cent palm oil with conventional diesel fuel. The policy aims to reduce reliance on fossil fuels and strengthen domestic demand for palm oil.

Despite the positive momentum, market participants remain cautious about several challenges that could affect the sector. Rising shipping and insurance costs have been reported due to longer maritime routes taken by vessels avoiding conflict zones. These increased logistics costs have raised concerns that exports from major producers such as Malaysia and Indonesia could slow in the coming months.

In addition, the Malaysian Palm Oil Board has raised the reference price for crude palm oil for April to about RM3,935.19 per tonne, which will increase the export duty rate to 9.5 per cent, slightly higher than the 9 per cent applied in March. The adjustment reflects stronger market prices but may also influence trading activity and export volumes.

Analysts note that palm oil prices may experience some short-term fluctuations as traders respond to developments in global vegetable oil markets, exchange rates, and geopolitical tensions affecting energy prices. Technical analysis suggests prices could temporarily correct toward the RM4,494 to RM4,514 range before attempting to test resistance levels near RM4,616 per tonne in the near term.

Overall, the outlook for palm oil remains closely tied to movements in global energy markets, biodiesel policies in major producing countries, and demand from large importing nations such as China and India.