FX.co ★ Palm Oil Rebounds from 6-1/2-Month Low

Malaysian palm oil futures experienced an increase of over 1%, climbing to above MYR 4,050 per tonne. This rise breaks a three-session losing streak, fueled by indications of strong demand. Data from cargo surveyors highlighted an export increase ranging between 13.6% and 17.0% month-on-month during the first half of April. Expectations surrounding Malaysia’s upcoming March trade data may provide further insights, following February's export growth, which was primarily driven by robust agricultural shipments, especially palm oil. Prices have recovered from a six-and-a-half-month low, spurred by optimism that India, the largest importer, may boost its purchases this month due to declining inventories and the approach of the holiday season. In March, India saw a nearly 14% increase in palm oil imports. Nevertheless, the potential gains are tempered by uncertainty regarding U.S. trade policy, as pressure may resume after a 90-day tariff pause concludes. In Indonesia, the leading producer, the industry has called on the government to reduce export costs to counteract U.S. tariffs—a move that could bolster domestic trade but potentially increase global supply, thus restraining further price rises.