Palm Oil Set for Weekly Gain as Price Gap with Soybean Oil Widens
Palm oil is poised for its first weekly gain in three weeks, with benchmark futures in Kuala Lumpur up by 1.6%.
The tropical oil is becoming increasingly attractive to buyers, thanks to a significant price discount compared to soybean oil.
On Wednesday, palm oil was trading $239 per ton cheaper than soybean oil — the widest gap in a year, far above the average $19 discount since May 2024.
This growing competitiveness is driving bargain-buying interest, traders say.
Supporting the momentum, Malaysia’s palm oil exports surged in early May.
Intertek Testing Services reported a 6.6% increase in shipments, particularly to key markets like India and China.
Meanwhile, AmSpec Agri’s data showed an even stronger export jump of 14% during the same period.
