Palm Oil Logs Third Weekly Loss – Weakness in Soyoil and Crude Prevails
Palm Oil Logs Third Weekly Loss – Weakness in Soyoil and Crude Prevails
Palm Oil Logs Third Weekly Loss – Weakness in Soyoil and Crude PrevailsMalaysian palm oil futures fell on Friday, weighed down by continued weakness in soy oil and crude oil markets. Despite strong export flows, futures logged their third straight weekly loss.
📊 Market Situation & Price Development (in EUR/t)
The August 2025 contract on the MDEX fell by 41 MYR on Friday, closing at 3,815 MYR/t. This equals approximately 763.00 EUR/t, assuming an exchange rate of 5.00 MYR = 1.00 EUR. The weekly change was minimal: –0.05%.🌍 Key Market Drivers
- Soyoil and Crude Oil Weakness DominateThe continued downturn in soy oil (–1.8%) and Brent crude oil prices weighed heavily on palm oil sentiment.
- Export Demand FirmTraders noted consistent export flows to India and Pakistan, driven by a historically wide spread between soyoil and palm oil.
- Technical CorrectionThe third weekly loss was limited in scope, suggesting buyers may return near 3,800 MYR/t if external conditions stabilise.
- Macro Uncertainty RemainsMarkets await clarity on U.S. biofuel policy, which has recently dominated sentiment across all edible oil markets.
💼 Trading Strategy & Market Outlook
Palm oil remains under pressure but is approaching technical support levels. A reversal may follow if soy oil finds a floor.Strategy:– Monitor support at 3,780–3,800 MYR/t– Wait for soy oil reversal before committing to longs– Exporters should stay aggressive shortly