Malaysian palm oil futures prices remain stable after one and a half months of rise

20-Jun-2025 01:58 PM

Kuala Lumpur. In Malaysia, the world’s second-largest producer and exporter of palm oil, futures prices of this key vegetable oil had been on a consistent upward trend for the past six weeks. However, they are now showing signs of stability, although no decline has been recorded.

On June 20, 2025, the crude palm oil (CPO) futures contract for September delivery on the Bursa Malaysia Derivatives (BMD) Exchange rose by 7 ringgit (0.17 percent) to 4,111 ringgit ($967.52) per tonne in early trading. For the current week, this contract is up by 5.5 percent and is likely to mark a sixth consecutive weekly gain.

The sustained firm trend in global edible oil markets has positively influenced palm oil prices. The Iran-Israel conflict has pushed up international crude oil prices, which in turn is supporting higher edible oil prices.

On the Dalian Commodity Exchange in China, soy oil futures rose by 0.62 percent and palm oil futures by 0.28 percent. Similarly, on the Chicago Board of Trade (CBOT), soy oil futures rose by 0.09 percent.

Although crude petroleum prices softened slightly today, they remain elevated on a weekly basis. Ongoing geopolitical tensions, especially the Iran-Israel war, are adding to investor concerns.

The Malaysian ringgit appreciated by 0.21 percent against the US dollar in the past day, making palm oil slightly more expensive for foreign buyers.

Reports suggest that due to the recent rise in CPO prices, some Indian importers have cancelled palm oil import deals scheduled for July–September delivery.

Despite it being peak production season in Malaysia and Indonesia, and surplus stocks reaching high levels, CPO prices have remained firm.

This is largely due to strong demand from major buyers like India and China, which continues to support the market.