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On the morning of May 25th, Thursday, crude palm oil futures on the BMD (Bursa Malaysia Derivatives) may open higher, following the upward trend of US soybean oil and international crude oil. The rise in crude oil prices has boosted the appeal of palm oil as a raw material for biodiesel. However, the slowdown in Malaysian palm oil export growth and seasonal increases in production will limit the upside potential of palm oil prices. It is expected that palm oil production in Indonesia and Malaysia will increase in May. The South Malaysian Palm Oil Association (SPOMMA) estimates that Malaysian palm oil production increased by 18.5% from May 1st to 20th.
