Palm oil prices extended their rally for a fourth consecutive session on Thursday, reaching their highest level in nearly two weeks, supported by stronger demand for Malaysian supplies and a pickup in exports during December.
According to data from Intertek Testing Services, Malaysia’s palm oil exports during the first 25 days of December rose 1.6% month-on-month. India emerged as the largest buyer during the period, importing 279,550 tonnes of palm oil — a sharp 66% increase compared with the same timeframe last month. Malaysia is the world’s second-largest palm oil producer after Indonesia.
The sustained buying interest has helped lift benchmark futures despite currency headwinds. The Malaysian ringgit strengthened for a third straight session and is hovering near a four-and-a-half-year high. A firmer ringgit typically makes palm oil more expensive for overseas buyers, potentially capping further gains.
On Bursa Malaysia Derivatives, palm oil futures for March delivery rose as much as 1.2% to 4,086 ringgit per tonne. By the midday break, prices eased slightly to 4,068 ringgit per tonne, though they remain down about 8.5% so far this year, according to Bloomberg data.
Regional vegetable oil markets also traded higher. On China’s Dalian Commodity Exchange, the May contract for refined palm oil gained 0.4% to 8,576 yuan per tonne, while May soybean oil futures rose 0.3% to 7,844 yuan per tonne.
Market participants are closely watching export trends and currency movements in the coming sessions, as demand from key buyers such as India continues to play a crucial role in shaping palm oil price direction.