Malaysian palm oil futures traded just below MYR 4,500 per tonne on Wednesday, extending losses into a second session as a firmer ringgit and softer edible oil prices in Dalian and Chicago pressured market sentiment. Crude oil prices also declined sharply on signs of a potential ceasefire in the Middle East, eroding support from biodiesel-linked demand.
Market participants remained cautious ahead of export estimates for the first 25 days of March, due later today, with demand expected to ease following the Eid festive period. In key buyer India, refiners were reported to have scaled back purchases of palm oil, soyoil, and sunflower oil, viewing the recent conflict-driven price rally as temporary and intending to rebuild stocks once geopolitical tensions subside. India’s palm oil imports are forecast at about 680,000 tonnes in March, down from 847,689 tonnes in February.
Nonetheless, the downside remained limited by expectations that Indonesia, the world’s largest palm oil supplier, could raise export taxes in April and accelerate the rollout of its B50 biodiesel mandate.
