Palm Oil Up Toward MYR 4,500 Ahead of Wednesday Break

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.

Malaysian palm oil futures fell over 1% to below MYR 4,500 per tonne, reversing gains from the prior session amid a stronger ringgit and weakness in Dalian edible oils. Meanwhile, the Chicago market was closed for a holiday. Broader energy markets also pressured sentiment, with crude oil prices slipping to two-week lows on optimism that the U.S. and Iran were moving closer to a peace deal. Weak exports further weighed on risk appetite, with cargo surveyors noting that palm oil shipments during May 1–20 dipped between 13.9% and 20.5% from April. In India, the world’s largest palm oil buyer, imports shrank 26% in April to a four-month low due to softer institutional demand and a narrowing price discount. Still, Losses were tempered by tighter exports in top grower Indonesia, set to phase in June–August ahead of full implementation in September, which could benefit Malaysia. Jakarta will also lift its biodiesel mandate to B50 in July, while Malaysia plans to raise blending to B15 in June.

Malaysian palm oil futures hovered around MYR 4,500 per tonne, recovering from recent losses as a weaker ringgit and firmer soyoil prices in Chicago lifted sentiment. Gains in crude oil prices also lent support, amid fading hopes for a breakthrough in U.S.-Iran peace talks. Meanwhile, top producer Indonesia plans to establish a centralized export agency for key commodities, including palm oil, raising concerns over possible supply disruptions during the transition period while potentially benefiting Malaysia’s palm oil sector. For the week, contracts are heading for a solid gain of near 2%, reversing drops in the prior three weeks. However, the upside was capped by weak exports, with cargo surveyors noting palm oil shipments for May 1–20 fell between 13.9% and 20.5% from the same period in April. In India, the world’s largest palm oil buyer, imports dropped 26% in April to a four-month low, due to softer institutional demand and a narrowing price discount against competing edible oils.