Palm oil heads for weekly gain on India demand, biofuel outlook
Palm oil prices are rising due to anticipated demand from India's festival season and concerns over El Niño-related production drops. Additionally, higher crude oil prices are making palm oil more attractive as a biofuel feedstock.
Why it matters
Fluctuations in palm oil prices impact global food costs and the renewable energy sector, particularly in major producing nations like Indonesia and Malaysia.
BURSA SGX Home Vegoils Make The Edge Malaysia your preferred source on Google (July 17): Palm oil headed for a second weekly advance on expectations for stronger demand from India, and a lift from higher crude prices.
Futures traded near RM4,590 a tonne in Kuala Lumpur, up about 1% for the week, though little changed from the previous session.
“Upcoming demand from India for festival season and El Niño concerns are seen underpinning prices,” said Gnanasekar Thiagarajan, head of trading and hedging strategies at Kaleesuwari Intercontinental Ltd, referring to the hot and dry weather pattern that is expected to weigh on production later this year.
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