Palm Oil Rises After Recent Weakness

Malaysian palm oil futures hovered around MYR 4,550 per tonne, extending recent gains amid firmer edible oil prices on the Dalian Exchange and concerns over softer Malaysian output. Sentiment remained supported by top supplier Indonesia’s plan to route key commodity exports, including palm oil, through a state-run trading firm starting in September, a move that could potentially benefit Malaysian shipments. However, contracts are on track for a second monthly drop, weighed by sluggish exports. Cargo surveyors noted exports during May 1–25 fell between 14.5% and 18.0% from April, partly due to the absence of festive buying. Demand outlook from India, the world’s largest palm oil importer, stayed uncertain after imports plunged 26% to a four-month low in April. Separately, crude oil prices are on track to post a steep monthly fall as reports of a tentative extension of the U.S.–Iran ceasefire eased fears of supply disruptions in the Middle East. Markets will resume trading on Wednesday.

Malaysian palm oil futures rose for a second straight session, hovering above MYR 4,500 per tonne as trading resumed after a holiday break. Support came from a weaker ringgit, concerns over softer Malaysian output, and firmer edible oils in Dalian and Chicago markets. Simultaneously, crude oil prices surged as Washington–Tehran tensions escalated, despite ongoing peace talks, adding upside support to palm oil through its biodiesel link. Meanwhile, top producer Indonesia plans to channel key commodity exports, including palm oil, through a state-run firm starting in September, a move that could benefit Malaysian palm oil shipments. However, gains were capped by an uncertain demand outlook from India, the world's largest importer, after the country’s palm oil imports plunged 26% in April to a four-month low. Weak export demand also weighed, with cargo surveyors noting that Malaysian palm oil exports during May 1–25 fell between 14.5% and 18.0% from the same period in April.

Malaysian palm oil futures rose modestly to near MYR 4,500 per tonne, rebounding from prior losses amid a weaker ringgit and firmer edible oils on the Dalian exchange. Crude oil strength also provided support after U.S. defensive actions in southern Iran boosted the broader vegetable oil complex. Meanwhile, the top producer, Indonesia, exported 2.17 million metric tons of palm oil products in March, down from 2.88 million tons in March 2025, according to an industry association. Jakarta plans to route commodity shipments through a state-run firm starting September, a move seen as potentially aiding Malaysian flows in the interim. However, gains were capped by weak exports. Cargo surveyors noted that Malaysian palm oil exports for May 1–25 fell between 14.5% and 18.0% from April. Demand prospects from India, the world’s largest palm oil importer, also remained uncertain after imports plunged 26% in April to a four-month low. Markets will be closed on Wednesday for a holiday.