Palm Oil Hits 15-Week High on Biodiesel Demand, India Outlook

Malaysian palm oil futures hovered around MYR 4,750 per tonne, extending recent gains to their highest level since early April. Sentiment was boosted by stronger edible oils on the Dalian market, a weaker ringgit, and firmer oil prices amid persistent hostilities in the Middle East. The market was also on track for a third weekly gain, up about 3.3% so far, buoyed by higher biodiesel mandates in Indonesia and Malaysia, which are expected to boost demand for palm oil as a biofuel feedstock. In top buyer India, demand prospects improved after forecasts pointed to higher edible oil imports between July and October, as tightening supplies ahead of the festive season are likely to lift palm oil purchases. Weather concerns added further support after Kuala Lumpur warned that record-high temperatures could weigh on production next year. Meanwhile, July 1–20 export data were mixed, with AmSpec Agri noting shipments fell 0.9% from June, while Intertek Testing Services reported a 4.1% growth.


