Malaysian palm oil futures edged lower, trading just under MYR 4,650 per tonne after recent gains, pressured by a stronger ringgit. The benchmark contract is on track for a weekly decline of more than 4%, snapping a five-week winning streak, after Malaysian Palm Oil Board data showed March production rose 7.21% month-on-month to 1.38 million tonnes.
Downside pressure was partly offset as palm oil inventories fell 16.14% in March to 2.27 million tonnes, while exports jumped 40.69% to 1.55 million tonnes. Broader edible oil markets also firmed, with strength in Dalian and Chicago contracts, underpinned by hopes that geopolitical tensions involving Iran may ease.
In India, the world’s largest buyer, expectations of restocking ahead of stronger seasonal demand are building after imports fell 19% in March to a three-month low. Meanwhile, Indonesia, the world’s biggest producer, issued a decree detailing the implementation timeline for its biofuel mandate. Traders are now awaiting updated shipment estimates from cargo surveyors later today for further direction.
