Palm oil futures experienced a notable surge, marking a second consecutive session of gains and reaching a high not seen in over a week. This upward trajectory was driven by several factors, including the sustained rise of soyoil prices The benchmark palm oil contract for July delivery on the BMD Exchange closed up 68 ringgit, or 1.76%, reaching 3,930 ringgit ($829.81) per metric ton. 

Influential Factors:

1. Weather Disruptions: Poor weather conditions in Brazil and Russia have raised concerns about potential crop damage, leading to sustained gains in soyoil prices. Indonesia, a major palm oil producer, is also grappling with adverse weather, further bolstering palm prices.
2. Demand Surges in India: In India, the largest importer of palm oil globally, demand for the commodity surged by 41% last month. This spike in demand, attributed to price moderation, encouraged refiners to increase their purchasing activities.
3. Price Competition and Shipments: Despite these positive indicators, a drop in crude oil prices and increased price competition from other edible oils, particularly sunflower oil, have somewhat tempered the bullish sentiment. Reuters reported a 7.79% decline in Malaysia’s shipments of palm oil products in April compared to the previous month.
4. Soybeans Shortage Concerns: Worries over potential soybeans shortage, fueled by adverse weather conditions in Brazil and Russia, are contributing to higher soyoil prices, which in turn influence palm oil prices.

Weather Alerts and Impact:

Indonesia’s meteorological agency has issued warnings of extreme weather events from May 7-13, including tornadoes, thunderstorms, floods, Additionally, about 64% of Indonesia is expected to experience a dry season between May and August, which could negatively affect palm yields.

Global Market Dynamics:

The performance of palm oil is closely tied to price movements in related oils as they compete for market share in the global vegetable oils market. The strength of the Malaysian ringgit, palm’s currency of trade, against the dollar has also played a role in market dynamics.

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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 Bullish  Position due to narrow gap between rival soft edibles oils, it may hovering in the range of MYR3,800 to MYR4,250 per ton.