Palm Oil Firms Ahead of Key Monthly Data

Malaysian palm oil futures hovered above MYR 4,600 per tonne, recovering from recent losses that had pushed prices to a near two-week low. The upturn was supported by bargain hunting, a weaker ringgit, and firmer soyoil prices on the Chicago market. Gains were further boosted by a surge in crude oil prices, driven by doubts over the durability of the two-week ceasefire between the U.S. and Iran, which lifted broader commodity sentiment. Meanwhile, Reuters projected the steepest inventory drop in three years for March. In Indonesia, the world’s largest producer, a ministerial decree was issued outlining the timeline for the country’s biofuel mandate. However, the upside was capped by weakness in edible oils on the Dalian exchange and persistent demand concerns in top buyer India, where palm oil imports fell 19% in March. Caution also grew ahead of key data releases, including the Malaysian Palm Oil Board’s monthly report and inflation figures from major consumer China, both due Friday.

Malaysian palm oil futures slid around 3% to below MYR 4,630 per tonne, continuing their recent decline and marking the lowest level in almost two weeks. The slump followed a sharp fall in crude oil prices, which dampened risk appetite after U.S. President Donald Trump announced a two-week ceasefire in the Iran conflict, reducing palm’s appeal as a biofuel feedstock. Weaker edible oils on the Dalian and Chicago markets also pressured sentiment. Further, caution also grew ahead of key data from the Malaysian Palm Oil Board later this week. Demand worries added pressure, with imports in top buyer India down 19% in March to a three-month low as high prices curbed buying. Still, losses were capped by supply-side support, as Reuters forecast Malaysia’s steepest inventory draw in three years during March. Meantime, Indonesia, the world’s largest producer, posted strong February exports ahead of its B50 rollout in July, while Thailand reportedly tightened crude palm oil export controls.

Malaysian palm oil futures hovered near MYR 4,850 per tonne on Tuesday, rebounding from prior weakness as a weaker ringgit and firmer edible oil prices in Dalian and Chicago lent support. Crude oil’s rally, fueled by U.S. President Trump’s escalated rhetoric against Iran, further lifted sentiment for biofuel-linked commodities. On the supply side, Indonesia, the top producer, posted double-digit export growth in February ahead of its July B50 biodiesel mandate. Meanwhile, Thailand announced tighter crude palm oil export controls and regulated bottled oil prices from April 7. Cargo surveyors noted Malaysian shipments surged 44%–57% mom in March. Separately, Reuters forecast the steepest inventory draw in three years, cutting stockpiles to the lowest since July. Gains, however, were capped by caution ahead of official monthly data and China’s inflation release. Demand concerns also lingered after March imports fell 19% in top buyer India to a three-month low as high prices curbed buying.