Palm Oil Climbs After Two-Day Drop on Strong Demand Signals

Malaysian palm oil futures rose over 1% to above MYR 4,500 per tonne on Thursday, rebounding from losses in the previous two sessions, supported by a weaker ringgit and firmer edible oil prices on the Dalian and Chicago markets. Gains in crude oil also lifted sentiment, amid expectations of de-escalation in the Middle East conflict. Strong export data further underpinned prices, as cargo surveyors estimated Malaysian palm oil shipments for March 1–25 surged between 38.4% and 50.6% from the same period in February, pointing to robust post-Eid demand and prompting fresh buying interest. However, upside momentum was capped by projections that imports from top buyer India may decline to around 680,000 tonnes in March, down from 847,689 tonnes in February. Meanwhile, in Indonesia, the world’s largest producer, export taxes could be lifted in April, as authorities move to accelerate the rollout of the B50 biodiesel mandate.

Malaysian palm oil futures hovered below MYR 4,500 per tonne on Wednesday, retreating for a second straight session as a stronger ringgit and weaker edible oil prices in Dalian and Chicago weighed on sentiment. Crude oil also fell sharply on signs of a possible Middle East ceasefire, reducing biodiesel-linked demand support. Traders remained cautious ahead of export estimates for the first 25 days of March, due later today, with demand likely slowing after the Eid festive period. In top buyer India, refiners reportedly scaled back purchases of palm, soyoil, and sunflower oil, viewing the recent conflict-driven rally as temporary and planning to restock once tensions ease. India’s palm oil imports are projected at around 680,000 tons in March, down from 847,689 tons in February. Still, losses were capped by expectations that Indonesia, the world's largest supplier, may raise export taxes in April and accelerate its B50 biodiesel mandate rollout.

Malaysian palm oil futures slipped to around MYR 4,580 per tonne on Tuesday, reversing gains from the prior session as trading resumed after the Eid holiday, rattled by weaker edible oils on the Dalian market. Sentiment also turned cautious, with global edible oil markets expected to remain volatile. While energy disruptions in the Middle East have lifted expectations for biodiesel demand, buying interest from key importers has been uneven, clouding the broader outlook. Still, losses were capped by a weaker ringgit and expectations that top producer Indonesia may raise its palm oil export taxes in April. Meanwhile, recent data highlighted a pickup in export demand, with cargo surveyors estimating March 1–15 shipments surged 43.5%–56.9% month-on-month, supported by festive buying. In India, the world’s largest consumer, palm oil imports rose 11% in February to a six-month high, aided by its price discount versus rival oils.