Palm oil prices are on a tear, climbing for a fourth straight session with no signs of slowing. With Eid al-Fitr around the corner, strong demand from key buyers is lighting a fire under futures markets, while global supply constraints and biodiesel expansion plans are laying the groundwork for sustained bullish momentum.
Palm oil futures traded around MYR 4,435 per tonne, driven higher by robust demand in the lead-up to Eid al-Fitr—historically a peak consumption window in major importing nations. This rally marks the fourth consecutive session of gains, underscoring a broader sentiment shift among investors anticipating tight near-term supply and resilient global demand.
Support is also coming from parallel gains in competing vegetable oils, where constrained global supplies and growing demand for edible oils are lifting prices across the board. These conditions are adding tailwinds to palm oil’s upward trajectory.
In Indonesia, bullish sentiment is reinforced by government policy, as authorities push forward with plans to increase the palm oil content in biodiesel to 50% by 2026. This policy not only strengthens the domestic demand outlook but signals a long-term structural shift towards renewable fuel integration, giving investors a compelling consumption narrative.
India, a key palm oil importer, is seeing friction over duty-free edible oil imports from Nepal under the SAFTA agreement. Domestic traders are raising concerns about market distortion and calling for regulatory intervention, a development that could shape the near-term trading landscape and policy outlook.
Adding to the complexity, weather disruptions and the ongoing transition from La Niña to El Niño are fuelling supply uncertainty. These climatic factors are being closely watched by traders and analysts alike, reinforcing expectations of continued price support through potential crop volatility.
Palm oil’s current rally reflects a convergence of seasonal demand, structural policy shifts, and global supply dynamics—positioning it as a sector of strong interest for forward-looking investors.
Dekel Agri-Vision PLC (LON:DKL) aspires to become a leading agro-industrial company in West Africa, one that creates value for shareholders whilst at all times placing the interests of the local communities and environment in which it operates in at the heart of its operations.
