Wedoany.com Report on Feb 11th, Recently, Malaysian palm oil futures prices have shown a significant increase. The benchmark April palm oil contract on the Bursa Malaysia Derivatives Exchange rose by 19 ringgit, or 0.46%, in the latest trading session, closing at 4,173 ringgit per metric ton. This price level is close to recent highs.

The main driver behind the price increase is market expectations for a decline in Malaysian palm oil production. Analysts point out that seasonal production slowdowns will lead to tighter supplies. Raghavendra Divekar, an analyst at Nomura Securities, stated, "Due to increased demand ahead of the Lunar New Year and concerns over weak Malaysian palm oil production, crude palm oil prices may continue to rise."

At the same time, expectations for Malaysian palm oil inventories are also set to change. According to an industry survey, due to increased exports and slower production, Malaysian palm oil stocks in January may end a 10-month consecutive growth trend and shift to a decline.

Rising soybean oil prices in the Chicago and Dalian markets have also provided support for Malaysian palm oil prices. When prices of alternative edible oils strengthen, palm oil, as one of the world's major vegetable oils, typically follows suit with price increases.

Market participants are closely watching the upcoming monthly report from the Malaysian Palm Oil Board (MPOB), which will further reveal the supply and demand situation in the Malaysian palm oil market. A Kuala Lumpur trader said, "The market will focus on Dalian data today, until the MPOB data tomorrow and POC analysts' forecasts for future developments."

The trend of Malaysian palm oil futures prices is influenced by a combination of various market factors, including supply and demand fundamentals, alternative edible oil prices, and the macroeconomic environment. Market analysts expect that, supported by expectations of tight supply, Malaysian palm oil prices may remain relatively strong in the short term.