Palm Oil Pauses After Six-Week Rally

20-Jun-2025 10:10 AM

Palm Oil Pauses After Six-Week Rally
★ Malaysian palm oil futures remained largely steady on Friday, pausing after a strong six-week rally. While gains in rival edible oils continued to support the market sentiment, futures showed signs of cooling off.
★ The benchmark palm oil contract for September delivery initially rose by 7 ringgit (0.17%) to 4,111 ringgit (\$967.52) per metric ton in early trade. So far this week, the contract has gained 5.5%.
★ In related markets, Dalian soyoil futures rose by 0.62% and its palm oil contract gained 0.28%, while CBOT soyoil prices edged up by 0.09%.
★ Despite a dip in crude oil prices on Friday, oil markets are on track for a third consecutive weekly gain, amid escalating tensions between Israel and Iran that continue to unsettle investors.
★ Weaker crude oil makes palm oil less appealing for biodiesel production, reducing its demand. Meanwhile, the Malaysian ringgit strengthened by 0.21% against the U.S. dollar, making palm oil more expensive for foreign buyers.