InfoSAWIT, KUALA LUMPUR – On Friday, August 15, Malaysian palm oil futures experienced a slight uptick as market participants awaited export data for further direction. By midday, the benchmark contract on the Malaysian Derivatives Exchange rose by 9 ringgit, or 0.2%, reaching 4,412 ringgit (approximately US$1,046.24) per ton. This marks a weekly increase of 3.69%, indicating a potential second consecutive gain.

"Futures are moving sideways, following the price movements of palm oil in Dalian. We are waiting for export data for further guidance," stated a Kuala Lumpur-based broker, as reported by InfoSAWIT from Reuters on Sunday, August 17, 2025. In Dalian, the most actively traded palm oil contract fell by 0.57%, while soyoil prices dropped by 0.37%. Similarly, at the Chicago Board of Trade, soyoil saw a slight decline of 0.17%. Palm oil often mirrors the movements of competing vegetable oil prices due to global market competition.

Leading trade associations reported a significant drop in India's palm oil imports in July due to contract cancellations, while soyoil exports surged year-on-year, driven by competitive pricing and delayed shipments from June. Meanwhile, official data from the Malaysian Palm Oil Board (MPOB) indicated an increase in the benchmark CPO price for September, resulting in a rise in export duties to 10%.

Global crude oil prices also climbed to a one-week high on Friday, following a warning from U.S. President Donald Trump about potential "consequences" if Russia fails to sign a peace agreement with Ukraine, raising supply concerns. The increase in crude oil prices makes palm oil an increasingly attractive raw material for biodiesel production. Additionally, the Malaysian ringgit weakened by 0.17% against the U.S. dollar, making palm oil cheaper for foreign currency holders.

Technical analyst Wang Tao noted that palm oil prices could test resistance levels at 4,481 ringgit per ton, with potential further increases up to 4,570 ringgit if surpassed. (T2)