Malaysian palm oil futures were little changed, trading around MYR 4,840 per tonne after two consecutive sessions of gains. Trading was subdued as the holiday closure of China’s Dalian exchange offset pressure from weaker Chicago soyoil prices. Market sentiment remained cautious amid rising geopolitical tensions, with repeated threats by U.S. President Trump against Iran and concerns over possible retaliation in the Gulf region adding volatility across commodity markets.
On the supply side, a Reuters poll conducted ahead of official monthly data indicated that Malaysia’s palm oil inventories likely recorded their sharpest decline in three years in March, dropping to the lowest level since July. At the same time, cargo surveyor estimates pointed to a surge in exports, with shipments up by 44%–57% month-on-month.
Separately, top producer Indonesia reported double-digit growth in palm oil exports in February, as the industry prepares for the rollout of a higher B50 biodiesel blending mandate in July. On the demand front, India— the world’s largest palm oil importer— saw its March purchases fall 19% to a three-month low, as refiners postponed buying in response to elevated prices.
