Palm oil edges higher on soyoil strength, heading for third weekly gain

what happened

Malaysian palm oil futures ticked up on Friday morning. The January contract on Bursa Malaysia Derivatives gained 6 ringgit, or 0.13%, to 4,798 ringgit ($1,175.12) per metric ton. The benchmark is up 0.69% so far this week and could post its third straight weekly rise.

Soyoil provided the lift. According to Reuters, Dalian's most-active soyoil contract climbed 1.78%, while Chicago Board of Trade soyoil rose 0.55%. Dalian palm oil slipped 0.19%. Separately, the crushers group Abiove said Brazil's soybean exports could fall 0.8% in 2027 to 113 million metric tons as domestic processing demand grows.

The Malaysian Palm Oil Council expects crude palm oil to stay above 4,600 ringgit ($1,128) per ton in November, citing stronger export demand, steady biodiesel use and seasonal output decline. Oil prices rose 4% to a five-month high in the previous session on concern over supply disruption after Houthi attacks on Saudi Arabia.

why it matters

Palm oil competes with other vegetable oils, so its prices often follow the soy complex. Higher crude makes palm a more attractive biodiesel feedstock, which supports demand. Reuters technical analyst Wang Tao flagged support at 4,736 ringgit after a correction from 4,852 ringgit.

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