Palm oil futures showcased a bullish trend on Monday, following the upward trajectory of soyoil prices, despite concerns over the export performance of Malaysia, a leading palm oil producer.The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange surged by 0.49%, closing at 3,863 ringgit ($815.50) per metric ton, marking a gain of 19 ringgit.

Influence of Soyoil Prices

Dalian’s most-active soyoil contract witnessed a rise of 0.76%, while its palm oil experienced a gain of 0.24%. Additionally, soyoil prices on the Chicago Board  recorded a notable climb of 0.93%.

Interconnectedness in the Vegetable Oils Market

Palm oil prices are intricately linked with the movements of related oils, as they vie for market share in the global vegetable oils sector.

Factors Driving Oil Futures

Oil futures experienced an uptick, fueled by Saudi Arabia’s decision to raise June crude prices for most regions. Additionally, concerns loomed over the possibility of a Gaza ceasefire, reigniting fears of widening conflicts in the vital oil-producing region.

Impact on Palm Oil Exports

The recent data for Malaysian palm oil exports from April 1 to April 30, as reported by SGS, AMSPEC, and ITS, indicated declines ranging from 6.15% to 11.46% compared to the previous month’s figures. & The rise in crude oil futures enhances the attractiveness of palm oil as a biodiesel feedstock option.

Market Insights and Outlook

Palm oil traded within a narrow range as Chinese markets resumed after Labour Day holidays. Although a weaker ringgit against the dollar provided some support, the expectation of a significant decline in Malaysia’s palm oil exports from May 1 to May 5 exerted downward pressure on prices.

In conclusion, Malaysian palm oil market reveals a delicate interplay of domestic and global factors. As these uncertainties, a comprehensive understanding of the evolving dynamics for Palm trade in Neutral To Slightly Bullish Position due to narrow gap between rival soft edibles oils, it may hovering in the range of MYR3,800 to MYR4,200 per ton.