Malaysian palm oil futures climbed to their highest level in 15 weeks on Friday, driven by a combination of rising crude oil prices and a rebound in Dalian palm olein contracts.
The October delivery contract on the Bursa Malaysia Derivatives Exchange rose 41 ringgit, or 0.87%, to trade at 4,751 ringgit ($1,161.33) per metric ton.
The move positions the benchmark contract for a potential third consecutive weekly gain, signaling sustained buying interest in the softs complex.
The rally underscores the growing correlation between energy markets and vegetable oils, as higher crude prices bolster the economics of biodiesel production.
Simultaneously, strength in Dalian’s palm olein futures reflects improving demand sentiment from China, the world’s largest importer of palm oil.
This dual support from energy and key import markets has helped offset concerns over ample global supplies, keeping upward pressure on prices.