Palm Oil Trades Below MYR 4,500

Malaysian palm oil futures continued to slip, hovering below MYR 4,500 per tonne and nearing a one-week low, pressured by a stronger ringgit and weakness in Dalian soyoil. Sentiment was further weighed by softer export demand, with cargo surveyors noting shipments of Malaysian palm oil products for April 1–25 dropped between 15.7% and 16.8% from the prior month, reflecting a post-festive slowdown. Caution also persisted ahead of China’s upcoming official PMI release, which could provide clearer signals on demand conditions in a key importing market. However, losses were capped by firmer soyoil prices on the Chicago exchange. Rising crude oil prices, driven by stalled U.S.-Iran peace talks and mounting supply concerns, also offered support. In top buyer India, purchases are expected to recover after imports fell 19% mom in March. Meanwhile, the Malaysian Palm Oil Council sees prices holding above MYR 4,500 in the near term, supported by high energy costs and potential El Niño risks.

Malaysian palm oil futures hovered below MYR 4,600 per tonne after recent gains, weighed by a stronger ringgit and weakness in Dalian soyoil. On the export front, cargo surveyor Intertek Testing Services noted that shipments of Malaysian palm oil products for April 1–25 fell 15.7% from the same period in March, reflecting softer demand following the festive season. However, the downside was capped by a continued rise in crude oil prices, as stalled peace talks between the U.S. and Iran heightened supply concerns. Bets of stronger demand from top buyer India also lent support, with prospects of a rebound after March imports dropped 19% from February. At the same time, Malaysia is moving toward a higher biodiesel mandate, targeting B15 from the current B10, which could absorb up to 1.5 million tonnes annually and tighten supply. Meantime, the Malaysian Palm Oil Council expects prices to hold above MYR 4,500 in the near term, supported by elevated energy costs and potential El Niño risks.

Malaysian palm oil futures rose modestly, hovering near MYR 4,600 after a recent pullback and on track for their first weekly gain in three. Support came from a weaker ringgit and firmer crude oil prices amid renewed Middle East tensions, boosting biodiesel-linked demand. The Malaysian Palm Oil Council expects prices to stay above MYR 4,500 in the near term, helped by elevated energy costs and potential El Niño risks. Expectations of stronger demand from top buyer India also grew after March shipments fell 19% mom. Simultaneously, Malaysia is moving toward a higher biodiesel blend, targeting B15 from the current B10, a move that could absorb up to 1-1/2 million tonnes annually and tighten supply in line with regional efforts to curb fuel imports. Gains, however, were capped by weak exports, with cargo surveyors noting April 1–20 shipments down about 25.6%–25.8% from March; while softer imports of key commodities in China, notably soybeans, may further weigh on the edible oils outlook.