Palm Oil Prices Stay Below MYR 4,500 on Weak Demand

Malaysian palm oil futures held below MYR 4,500 per tonne, hovering near a five-week low, as weak exports weighed on sentiment. Cargo surveyors estimated April 1–15 shipments plunged over 34% mom, reflecting the absence of festive demand. So far this week, contracts logged a second straight weekly decline, pressured by uncertainty over U.S.–Iran talks to end the Middle East conflict. Still, the downside was cushioned by firmer edible oil prices in Dalian and Chicago markets, alongside expectations that India, the top consumer, may boost purchases ahead of seasonal demand after March imports fell 19% to a three-month low. On the supply side, Malaysia’s inventories dropped for a third month to a seven-month low in March. Kuala Lumpur is also considering expanding biodiesel use to ease fuel strains amid the crisis. In key buyer China, solid Q1 2026 GDP growth lent support, though momentum may weaken as demand-supply imbalances and fragile external conditions persist.

Malaysian palm oil futures remained below MYR 4,500 per tonne, extending recent losses and hovering near a five-week low. Prices were pressured by a stronger ringgit and weakness in rival edible oils on the Dalian market. Lower crude oil prices added further downside, as prospects of renewed U.S.-Iran talks raised expectations of improved supply, dampening biodiesel demand. Caution persisted ahead of cargo surveyors’ export estimates for March 1–15, due later today, after soft shipment data in the first ten days of the month pointed to weak near-term demand. Still, losses were capped by expectations that top buyer India may step up purchases ahead of seasonal demand, following a 19% drop to a three-month low in March. Additional support also came from Malaysia’s inventories, which declined for a third straight month to a seven-month low in March. Meanwhile, Kuala Lumpur reportedly pledged to expand biodiesel usage to ease fuel supply strains amid the Middle East crisis.

Malaysian palm oil futures hovered below MYR 4,500 per tonne, retreating after recent gains as a stronger ringgit and weaker edible oil prices in Dalian and Chicago weighed on sentiment. A sharp drop in crude oil prices amid Middle East tensions further reduced palm oil’s appeal as a biodiesel feedstock. Export data added pressure, with cargo surveyors noting shipments tumbled 30.7%–38.9% in the first ten days of April versus March, signaling softer near-term demand. Still, losses were cushioned by expectations that top buyer India may boost purchases ahead of seasonal demand, after a 19% drop in March imports to a three-month low. In China, imports surged to their highest in over four years, underscoring resilient demand. Meanwhile, monthly data from Malaysia showed inventories fell for a third month to a seven-month low. Separately, Indonesia mandated downstream palm oil firms to secure industry certification by March 2027, highlighting the global push for sustainable sourcing.