Palm Oil Set for Back-to-Back Weekly Losses

Malaysian palm oil futures traded below MYR 4,550 per tonne, extending recent losses as weakness in Dalian edible oils weighed on sentiment. The market is heading for a second straight weekly decline, down about 0.8% so far, reflecting demand concerns. April imports by top consumer India plunged 27% month-over-month to a one-year low, adding to bearish sentiment. Meanwhile, cargo surveyors estimated Malaysia’s exports during April 1–25 fell 15.7%–16.8% from March, linked to softer post-festive buying. Still, losses were partly cushioned by a weaker ringgit and firmer Chicago soyoil. Crude oil prices also climbed on renewed U.S.–Iran tensions, boosting expectations for stronger biofuel demand. Domestically, Malaysia will implement its B15 biodiesel mandate from June 1, raising the blend from the current B10 to curb fuel imports and support palm oil consumption. Market participants now await monthly data from the Malaysian Palm Oil Board due Monday for clearer supply-demand signals.

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. At the same time, 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.