Palm Oil Rebounds After 2-Day Decline – Support from Soy Oil Recovery
Palm oil futures on the Malaysian exchange climbed on Friday, recovering from earlier losses. Gains were fueled by a rebound in CBOT soy oil, stronger demand signals, and mild optimism around export volumes heading into June.
📊 Market Overview – MDEX Futures (Malaysian Derivatives Exchange)
| Contract | Price (MYR/t) | Daily Change | % Change | Trend |
|---|---|---|---|---|
| Aug 25 | 3,851 | +31 MYR | +0.80% | ⬆️ |
| Jul 25 | 3,861 | +28 MYR | +0.73% | ⬆️ |
| Sep 25 | 3,843 | +34 MYR | +0.88% | ⬆️ |
💱 Approx. exchange rate: 1 USD = 4.28 MYR → ~USD 899–902/t
🌍 Key Market Drivers
- Soy Oil Recovery Helps Stabilise Sentiment
After two days of sharp losses, soy oil on the CBOT rebounded by +1.55%, providing much-needed support to vegetable oil markets. - Technical Bounce & Bargain Buying
Palm oil contracts found a floor after testing support near 3,820 MYR/t. Traders stepped in ahead of the weekend, expecting stronger short-term demand. - Rising Production Still a Concern
Forecasts for increased production in June and July continue to weigh on the outlook. However, rising exports to India and the Middle East ahead of the festival season are providing a partial counterweight. - Crude Oil Volatility Adds Complexity
Weakness in global energy markets may still temper palm oil’s upside due to its biodiesel linkage.
💼 Trading Strategy & Outlook
The market may attempt to hold above the 3,850 MYR/t mark heading into next week. Bullish momentum depends on continued soy oil strength and supportive export data.
Recommendations:
– Longs may be initiated above 3,850 with targets at 3,880–3,910 MYR
– Monitor external oil markets and cargo surveyor data early next week
– Sellers should remain cautious as price momentum returns
📈 3-Day Price Forecast (MDEX Aug 25)
| Date | Expected Range (MYR/t) | Outlook |
|---|---|---|
| May 23 | 3,835–3,865 | ⬆️ Slight recovery |
| May 24 | 3,840–3,880 | ➡️ Neutral-bullish |
| May 25 | 3,850–3,910 | ⬆️ Strength if soy oil holds |
🧭 Commentary – Biodiesel & Global Oils
- 📉 CBOT soy oil rebounded after a sharp 3% drop this week
- 📦 Indonesia and Malaysia report rising cargo demand
- ⚠️ Biodiesel margins remain under pressure in Asia
Related posts:
Palm Oil Eases After Rally – Production Gains Offset Export Support
Palm Oil Prices Rebound – Futures Post Strongest Daily Gain in Two Weeks
Palm Oil Logs Third Weekly Loss – Weakness in Soyoil and Crude Prevails
Palm Oil Prices Reverse as Soy Oil Crashes – First Weekly Gain Still Possible
Palm Oil Rises on Soyoil Rally – Weak Crude Oil Caps Upside
Palm Oil Futures Edge Higher – Oversupply Limits Gains