Malaysian palm oil futures opened higher on Thursday as trading resumed after a two-day Lunar New Year holiday, supported by gains in Chicago soyoil and a softer ringgit.
The benchmark May contract on the Bursa Malaysia Derivatives Exchange rose 29 ringgit, or 0.72%, to 4,045 ringgit ($1,034) per metric ton in early trade.
What’s supporting palm oil prices?
Palm oil often tracks movements in rival edible oils as it competes for global vegetable oil demand. Soyoil prices on the Chicago Board of Trade were up 0.29%, offering mild support to palm. Meanwhile, the Dalian Commodity Exchange remained closed for the Lunar New Year holiday.
A weaker Malaysian ringgit, which slipped 0.33% against the U.S. dollar, also lent support. Since palm oil is traded in ringgit, a weaker currency makes the commodity cheaper for overseas buyers, potentially boosting demand.
Factors limiting gains
Oil prices eased in early Asian trade after surging 4% in the previous session. Lower crude prices reduce the attractiveness of palm oil as a biodiesel feedstock, capping upside momentum.
On the demand side, European Commission data showed European Union soybean imports for the 2025/26 season (beginning July) reached 7.94 million tons by February 15, down 11% year-on-year. Palm oil imports into the EU were also 2% lower at 1.86 million tons, reflecting softer overall import trends.
Overall, palm oil prices are balancing support from rival edible oils and currency movements against subdued global demand signals and easing crude prices.