Palm Oil Market Update – Futures Recover After Week of Pressure
Malaysian palm oil futures bounced back on Friday, with the August 2025 contract rising by 31 MYR to close at
3,851 MYR/t, halting a week-long slide. The rebound was aided by improved external sentiment and gains in competing oils.
📊 MDEX Palm Oil Futures – Closing Summary (23 May 2025)
📌
Benchmark: August contract now at 894.85 USD/t (EUR ≈ 827/t at 1 USD = 0.925 EUR)
🪵 Market Drivers
- 📈 Technical rebound after a sharp drop earlier in the week.
- 🛢️ Soyoil recovery in Chicago provided cross-commodity support.
- 📦 Export optimism persists for May despite a higher production outlook.
- ☁️ Traders remain cautious amid expectations of seasonal stock build-up.
🌍 International Outlook
- India & China remain key buyers, though recent demand has been mixed.
- Production forecasts for Malaysia point to rising output in June and July.
- Crude oil’s slide earlier in the week limited biofuel-driven support.
🔮 3-Day Price Forecast (August 2025 Contract)
Trend: ⬆️ Mild rebound possible if soy and crude oil stabilise.
🧭 Summary
✅ Friday marked a
technical recovery after a rough week.📉 However,
upside is capped by ample supply and sluggish edible oil demand.📊 Watch for Monday’s export estimates and further signals from soyoil and crude oil markets.
