Palm Oil Rises for Third Straight Session, Near 5-Week High
30-Mar-2026 05:24 PM
Palm Oil Rises for Third Straight Session, Near 5-Week High
★ Palm oil prices extended gains for the third consecutive day, approaching their highest level in over five weeks.
★ The rally is primarily driven by a significant shift in energy markets. Palm oil is currently trading at a discount of about $277 per tonne to gasoil, marking a sharp reversal from last year’s average premium.
★ Rising crude oil prices amid escalating tensions in the Middle East have made palm oil more attractive for biodiesel production.
★ This is the widest discount since October 2022, which is likely to boost demand from key biodiesel markets such as Indonesia, Brazil, the European Union, and the United States. Additionally, palm oil has become more competitive compared to soybean oil.
★ On a quarterly basis, palm oil prices have risen by around 15%, while soybean oil has surged nearly 40%, leading to a shift in demand towards palm oil.
★ If crude oil prices remain firm, biodiesel consumption—especially in Indonesia—is expected to increase further, providing continued support to palm oil prices.