Malaysian palm oil futures climbed more than 1.5% to nearly MYR 4,600 per tonne on Thursday, extending gains for a second consecutive session. The rally was supported by a weaker ringgit, strength in rival edible oils on the Dalian and Chicago exchanges, and a sharp rise in crude oil prices.
Export prospects further underpinned the market, with cargo surveyors reporting that shipments for March 1–10 jumped by 37.9%–45.3% from the same period in February. The surge was largely driven by stronger demand during Ramadan and in the lead-up to Eid.
Supply-side data added to the bullish tone. End-February inventories fell 3.9% to a four-month low of 2.70 million tonnes, while crude palm oil production slumped 18.6% to 1.28 million tonnes.
Demand from key buyer India also strengthened. The country’s palm oil imports rose 10.1% in February to 844,000 tonnes, the highest level in six months, as buyers took advantage of wide discounts relative to competing vegetable oils.
Gains, however, were partially limited by developments in Indonesia, the world’s largest palm oil producer. The country has accelerated road tests for its B50 biodiesel blend as a contingency measure against potential crude oil supply disruptions stemming from tensions in the Middle East.
