Palm Oil Trades Below MYR 4,600

Malaysian palm oil futures slipped below MYR 4,600 per tonne, extending losses on a stronger ringgit and weakness in edible oils on Dalian and Chicago markets. Sentiment was further pressured by reports that the U.S. and Iran are working on a memorandum to establish a framework for talks aimed at ending the war. Such developments could ease crude oil prices, hurting biofuel economics and reducing demand for palm oil as a biodiesel feedstock. Meanwhile, demand concerns deepened, with imports by top buyer India down 27% mom in April to a one-year low. Meanwhile, cargo surveyors noted April 1–25 exports fell 15.7%–16.8% from March, reflecting post-festive softness. Still, losses were capped after Malaysia confirmed its B15 mandate will take effect June 1, up from B10, to curb fuel imports. Separately, palm oil prices may climb around 12% to MYR 5,200 by mid-July, analyst Dorab Mistry says, as biodiesel demand strengthens and supply tightens on energy-driven gains in vegetable oils.

Malaysian palm oil futures dipped around 1.5% to below MYR 4,700 per tonne, reversing gains from the prior two sessions as traders took profits after prices hit a three-week high. Sentiment was further pressured by a stronger ringgit, alongside weaker soyoil prices on Chicago markets. Meanwhile, crude oil prices fell further after U.S. President Trump signaled a possible peace deal with Iran, easing energy market concerns. Demand weakness also weighed, with April imports by top buyer India tumbling 27% mom to a one-year low as elevated prices narrowed palm oil’s discount to rivals. Separately, cargo surveyors estimated April 1–25 exports fell 15.7%–16.8% from March, reflecting typical post-festive softness. Still, losses were cushioned by firmer edible oils on the Dalian Exchange as trading resumed after holidays. Meanwhile, Malaysia will roll out its B15 biodiesel mandate from June 1, up from B10, a move aimed at curbing fossil fuel imports and bolstering domestic palm oil demand.

Malaysian palm oil futures extended gains, hovering above MYR 4,650 per tonne and notching a three-week peak. The upside was supported by a weaker ringgit and optimism over Malaysia’s biodiesel policy. Kuala Lumpur is reportedly set to roll out B15 biodiesel, from the current B10, starting June 1, with 19 plants expected to begin production, a move aimed at reducing reliance on fossil fuel imports amid soaring oil prices. However, gains were capped by weaker demand signals. Imports in key buyer India fell 27% mom to a one-year low in April, as higher prices narrowed palm oil’s discount to rival oils and discouraged purchases. Export trends also softened, with cargo surveyors reporting shipments for April 1–25 dropped 15.7%–16.8% from March, reflecting typical post-festive weakness. Additional pressure came from rising supply, as top producer Indonesia exported 5.85 million tonnes of crude and refined palm oil in the January–March period, up 9.3% yoy, according to official data.