Malaysian Palm Oil Futures Extend Gains Amid Strength in Rival Edible Oils

The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange rose 75 ringgit (1.7%), reaching 4,478 ringgit ($1,009.24) per metric ton in early trade. This marked the third straight session of gains, reinforcing bullish momentum in the market.

Market Drivers & Price Outlook

• Strength in Rival Oils:

  • Dalian’s most-active soyoil contract climbed 2.27%, while palm oil futures on the exchange advanced 2.11%.
  • Chicago Board of Trade (CBOT) soyoil futures also edged 0.24% higher.

• Crude Oil Influence:

  • Oil prices rose slightly in early Asian trade but remain on track for a third consecutive weekly decline.
  • Market sentiment remains fragile due to U.S. President Donald Trump's renewed trade war with Chinaand threats of tariff hikes on other countries.

• Technical Analysis:

  • According to Reuters technical analyst Wang Tao, palm oil may break resistance at 4,425 ringgit per tonand potentially rise to the 4,462–4,523 ringgit range.

Outlook

With support from rising global edible oil prices, palm oil futures continue to gain momentum. However, geopolitical risks and trade uncertainties may introduce volatility in the coming weeks. Traders will closely watch supply-demand dynamics and external market influences to gauge the next price direction.