Malaysian palm oil futures hovered around MYR 4,450 per tonne on Wednesday, rebounding from the previous session’s steep decline as a weaker ringgit and firmer Chicago soyoil prices underpinned market sentiment. Buying interest also emerged after futures touched a 4½-month low, drawing in bargain hunters.
Export prospects added further support. Shipments of palm oil products for March 1–10 were estimated to have jumped by 37.9%–45.3% compared with the same period in February, driven by robust Ramadan and Eid demand.
Monthly data from the Malaysian Palm Oil Board showed that February inventories fell 3.9% to a four-month low of 2.70 million tonnes, while crude palm oil output dropped 18.6% to 1.28 million tonnes.
In addition, Indian buyers stepped up purchases amid worries that soyoil and sunflower oil supplies could be disrupted by tensions in the Middle East.
Upside momentum remained limited, however, as Indonesia—the world’s largest producer—considered fast-tracking implementation of its B50 biodiesel mandate, a move that could tighten export availability.
