FX.co ★ Palm Oil Firms as Week Begins

Malaysian palm oil futures experienced a slight increase on Monday, stabilizing around MYR 4,190 per tonne, after briefly dipping to MYR 4,147 in the previous trading session. This recovery was driven by stronger edible oil prices in the Dalian and Chicago markets. Sentiment improved further following a report from Intertek Testing Services indicating a 9.97% rise in Malaysian palm oil exports for the period January 1–25 compared to the prior month. Anticipation of greater demand ahead of the Lunar New Year and Ramadan in February provided additional support for prices. Concurrently, a reduction in supply was expected, with January production projected to decline by 15%–17% due to seasonal factors. In Indonesia, a leading supplier, officials forecasted palm oil exports to India could surpass 5 million tonnes by 2025, up from 4.8 million in 2024, as a result of India's tariff reductions. However, these gains were tempered by a stronger ringgit, potential new U.S. tariffs on Canada, and Indonesia's withdrawal of the B50 biodiesel initiative. The Malaysian Palm Oil Council has projected prices to remain within the MYR 4,000–4,300 range throughout February.