Palm Oil Market Stays Buoyant to Start Week

Malaysian palm oil futures extended gains for a third session on Monday, with prices holding above MYR 4,650 per tonne. A weaker ringgit underpinned sentiment, along with strength in Dalian palm olein as well as soyoil prices in Chicago markets. Robust exports added momentum, as cargo surveyors noted March 1–25 shipments surged 38–51% from February, reflecting strong post-Eid demand. Supply concerns also lent support, with top supplier Indonesia accelerating its B50 biodiesel rollout and weighing higher April export taxes. Crude oil’s upside amid the Iran war further bolstered sentiment. However, upside was capped by softer demand from top buyer India, where March imports are projected at 680,000 tonnes versus 847,689 tonnes in February. Indian regulators also extended the suspension of derivatives trading in key agricultural commodities, including crude palm oil, through March 2027. Caution lingered ahead of the March PMI data in China, another main consumer, set for later this week.

Malaysian palm oil futures rose for a second straight session on Friday, hovering near MYR 4,600 per tonne, supported by firmer edible oils on the Dalian exchange and a weaker ringgit. Strong export demand added momentum, with cargo surveyors reporting that March 1–25 shipments surged between 38% to 51% from February, reflecting robust post-Eid buying. Elevated crude oil prices amid Middle East tensions further lifted sentiment, boosting prospects for biofuel demand. However, futures are set to end the week slightly lower, down 0.2%, as earlier gains faded. The pullback was driven by expectations of weaker Indian demand, with March imports projected at 680,000 tonnes versus 847,689 tonnes in February. In Indonesia, authorities are accelerating the B50 biodiesel rollout while weighing higher export taxes for April. Meanwhile, caution lingers ahead of March PMI data in China, a key buyer, due next week, after factory activity slowed in February during the extended Lunar New Year holiday.

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.