Edible Oil Market Outlook

Malaysian CPO futures traded higher on Friday, supported by lower stock levels. However, concerns over demand and uncertainty surrounding Indonesia’s biodiesel policy continue to affect market sentiment.

• Market Performance:

• Benchmark April Contract: Increased by 35 ringgit, reaching 4,589 ringgit ($1,033.56) per metric ton.

• Recorded a 1.62% rise so far this week.

• Global Market Trends:

• Dalian Exchange:

• Soybean oil futures rose by 0.18%.

• Palm oil contracts gained 0.27%.

• CBOT (Chicago Board of Trade): Soybean oil futures strengthened by 0.5%.

• Upcoming Factors to Watch:

• Malaysia’s February 1-15 palm oil export data, expected on Saturday, which could provide key insights into demand trends.

• Crude oil prices rising, driven by increased fuel demand and expectations that U.S. President Donald Trump’s proposed global reciprocal tariffs will not take effect until April, easing immediate trade war concerns.

• Traders are closely monitoring export data, Indonesia’s biodiesel policy, and global trade dynamics for future market direction.

Conclusion: Despite market uncertainties, the outlook for palm oil futures remains positive. The upcoming export data and global policy decisions will be crucial in determining price movements.