Kuala Lumpur's palm oil futures extended their winning streak to a second session, propelled by a synchronized rally across global edible oils and a sharp rebound in crude prices. The benchmark contract settled at levels not seen in over four months, underscoring renewed strength in the vegetable oils complex. Main Developments October delivery palm oil on the Bursa Malaysia Derivatives Exchange climbed 24 ringgit, or 0.51%, to close at 4,747 ringgit ($1,160.64) per metric ton. That marks the highest settlement since early April. Read also: Rupee hits two-week low as oil surge offsets RBI support Support came from Dalian, where the most-active soyoil contract advanced 0.14% and palm oil rose 0.47%. Chicago Board of Trade soyoil futures also firmed, adding 0.3%. Palm oil tends to track rival edible oils since they compete for the same global market share. Crude oil provided an additional tailwind, jumping more than 2% to a one-week high. Hopes for a U.S.-Iran peace deal that could reopen the Strait of Hormuz faded after President Donald Trump demanded compensation from Tehran, tightening supply expectations. Background Stronger crude futures typically lift palm oil's appeal as a biodiesel feedstock, a relationship that has repeatedly shaped price action this year. Meanwhile, supply-side data released Monday showed Malaysia's palm oil stocks at 2.63 million metric tons in July—a five-month high and a 3.32% monthly increase. Production growth outpaced export demand during the month, according to the Malaysian Palm Oil Board. Export figures for August 1-10 were mixed but positive: AmSpec Agri Malaysia reported a 9.21% rise, while Intertek Testing Services measured a more modest 2.6% gain. Why It Matters For buyers across Asia and Africa, the four-month high signals firmer input costs ahead for food manufacturers and biodiesel producers. The stock build in Malaysia, the world's second-largest producer, suggests ample supply—yet futures are rising anyway, pointing to demand resilience and energy-market spillover. The divergence between swelling inventories and climbing prices highlights how geopolitical risk in the Middle East can ripple into agricultural commodities. Any sustained crude rally could keep palm oil elevated even if supply fundamentals soften. What's Next Market watchers will scrutinize the next tranche of export data to gauge whether August shipments maintain their early momentum. Traders also face a key question: whether the Dalian and Chicago rallies persist or fade, which would likely drag Malaysian futures along with them. With the U.S.-Iran situation unresolved, crude volatility remains a wildcard. A breakthrough in negotiations could reverse Tuesday's gains, while further deterioration might push palm oil toward fresh highs.