Malaysian palm oil futures rose about 1% to nearly MYR 4,600 per tonne on Monday, rebounding from earlier losses as a weaker ringgit and stronger Chicago soyoil underpinned prices. Sentiment was further lifted by a rally in global crude oil following the collapse of U.S.–Iran talks, which boosted risk appetite.
Market fundamentals also provided support. Data from the Malaysian Palm Oil Board showed that inventories in March fell for a third consecutive month, reaching a seven-month low. In India, the largest buyer, expectations of restocking ahead of seasonal demand increased after March palm oil imports declined 19% to a three-month low.
Upside momentum was capped, however, by softer export projections. Cargo surveyors reported that palm oil shipments in the first ten days of April fell between 30.7% and 38.9% from the same period in March. Policy developments in Indonesia, the world’s top supplier, were also in focus after President Prabowo ordered legal action against companies resisting a forestry crackdown, with authorities having already seized 5.88 million hectares of oil palm plantations.
