Palm Oil Prices Rebound – Futures Post Strongest Daily Gain in Two Weeks
Palm Oil Prices Rebound – Futures Post Strongest Daily Gain in Two Weeks
Malaysian palm oil futures surged on Tuesday, recording their largest daily gain in two weeks. Support came from a weaker ringgit, firmer rival oils, and improving technical signals.
Strategy:– Buy on dips above 3,880 MYR/t– Watch for confirmation above 3,930 for bullish extension– Exporters may price forward sales into August
Malaysian palm oil futures surged on Tuesday, recording their largest daily gain in two weeks. Support came from a weaker ringgit, firmer rival oils, and improving technical signals.
📊 Market Situation & Price Development (MDEX, converted to EUR)
The August 2025 contract closed at 3,915 MYR/t, up 33 MYR or +0.84% on the day.Assuming a conversion rate of 5.00 MYR = 1 EUR, this equals approximately 783.00 EUR/t.🌍 Key Market Drivers
- Weaker Ringgit Boosts CompetitivenessThe Malaysian ringgit softened against the U.S. dollar, making palm oil cheaper for foreign buyers.
- Soy Oil Stabilises After Sharp LossesAfter a volatile previous week, soy oil futures steadied, reducing pressure on the broader vegetable oil complex.
- Technical Momentum BuildsAfter three consecutive weekly losses, technical indicators pointed to short-covering and bargain hunting.
- Export Demand ImprovingTraders report steady shipments to India and Pakistan ahead of summer demand peaks.
💼 Trading Strategy & Market Outlook
Palm oil has regained short-term support above 3,900 MYR/t. If soy oil continues to recover, more upside could follow.Strategy:– Buy on dips above 3,880 MYR/t– Watch for confirmation above 3,930 for bullish extension– Exporters may price forward sales into August