Malaysian palm oil futures rose about 1% to approach MYR 4,600 per tonne on Friday, extending gains for a third consecutive session. Prices were supported by a weaker ringgit and firm edible oil markets on the Dalian exchange.
Sentiment was further lifted by strong export demand. Cargo surveyors estimated that shipments for March 1–10 jumped by 37.9% to 45.3% compared with February, driven by increased buying during Ramadan and in anticipation of Eid.
In India, the world’s largest palm oil buyer, imports rose 11% in February to a six-month high. A wider discount to rival vegetable oils prompted refiners to ramp up palm purchases while reducing sunflower oil imports.
Supply-side data also underpinned the market. February inventories fell 3.9% to a four-month low of 2.70 million tonnes, while crude palm oil output slumped 18.6% to 1.28 million tonnes.
With these factors in play, the market is heading for a second consecutive weekly gain of roughly 5%, bolstered further by news that Indonesia is accelerating road tests of its B50 biodiesel blend, scheduled for around mid-year.