FX.co ★ Palm Oil Poised for Weekly Gains After Recent Losses

Malaysian palm oil futures remained above MYR 4,060 per tonne on Friday, marking the fourth consecutive session of gains as trading resumed post-Christmas break. The price increase was bolstered by a rise in competing edible oils on the Dalian exchange and improved demand forecasts from India, the largest buyer, where imports in November increased by approximately 5% compared to October, driven by more favorable pricing. The contract is on track to end the week with a 4% rise, recovering after two weeks of declines. This recovery was primarily driven by bargain-hunting activities as prices had previously dropped to a 27-week low, momentarily falling below the significant MYR 4,000 level. Additionally, robustness in the broader energy market contributed support, as crude oil pursued a weekly uptick due to ongoing geopolitical tensions, thereby enhancing palm oil’s attractiveness as a biofuel component. However, the potential for further gains was limited by mixed signals from export data: Intertek Testing Services reported a 2.4% month-on-month increase in shipments from December 1–20, whereas AmSpec Agri Malaysia indicated a 0.87% reduction, highlighting the uncertainty surrounding short-term trends.