Palm oil reaches 15-week peak on Dalian strength and oil, with a third weekly gain.

Malaysian palm oil futures reached a 15-week peak on Friday. This was due to strong oil prices, and the rebound of 'Dalian palm olein Futures. They were also expected to post a third consecutive weekly gain.

At midday, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange was up 41 Ringgit or 0.87% at 4,751 Ringgit ($1,161.33) per metric ton.

This week, the contract has increased by 3.35%.

The futures opened higher as a continuation of the newly-triggered bullish rally. This was due to a persistent bullishness?in energy prices and a resurgent Dalian palm olein, as well as a perspective tightness for palm oil exports from Indonesia, due to the newly launched B50 mandate, and fresh demand from China, said Anilkumar?Bagani, commodity research director?at Sunvin Group.

Dalian's palm oil contract rose 1.33%, while the most active soyoil contract rose 0.88%. Prices of soyoil on the Chicago Board of Trade fell by 0.23%.

As palm oil competes to gain a share in the global vegetable oil market, it tracks the price fluctuations of competing edible oils.

Victor Almeida of the industry association Abrapalma said that Brazil could triple its palm oil production area in the next 10 years by expanding the?cultivation land on deforested Amazonian land.

The soybean crop for 2026/27 in Brazil is set to be sown in September and will likely fall by 2%, to 178 million tons, from a previous record. Rabobank said that the challenging market conditions could lead to a stabilisation of the planted area.

Brent oil prices were above $100 per barrel?Friday, heading towards their fourth consecutive week of gains. Palm oil is more appealing as a biodiesel source because crude oil futures are stronger.

Technical analyst Wang Tao stated that palm oil could?extend its gains to 4,771 Ringgit per ton?, after it cleared resistance at 4,730 Ringgit and climbed over a rising channel.

(source: Reuters)