Malaysian palm oil futures traded above MYR 4,850 per tonne on the first session of the new month, extending gains for a fifth consecutive day and marking their highest level since December 2024. Prices were supported by firmer edible oil markets in Dalian and Chicago, as well as stronger crude oil ahead of U.S. President Trump’s address on Iran.
The rally gained further momentum after Indonesia, one of the world’s leading producers, announced it will increase its mandatory biodiesel blending rate to 50% (B50) from 40% effective July 1. In China, a key consumer, factory activity grew for a fourth straight month in March, although the pace of expansion slowed, according to a private survey.
Upside was limited by a stronger ringgit and expectations of weaker demand from India, the largest buyer, where March imports are estimated at 680,000 tonnes, down from 847,689 tonnes in February. At the same time, European Commission data showed that EU palm oil imports for the 2025/26 season starting in July fell 2% year-on-year to 2.14 million tonnes.
