Malaysian palm oil futures remained below MYR 4,500 per tonne, hovering near a five-week low, as sluggish exports continued to dampen sentiment. Cargo surveyors reported that shipments for April 1–15 dropped more than 34% month-on-month, largely due to the lack of festive-driven demand. Futures are on track for a second consecutive weekly decline, pressured by uncertainty surrounding U.S.–Iran negotiations aimed at resolving the Middle East conflict.
Nonetheless, losses were partially limited by stronger prices for edible oils on the Dalian and Chicago exchanges, as well as expectations that India—the world’s largest consumer—could step up purchases ahead of seasonal demand, following a 19% month-on-month fall in March imports to a three-month low. On the supply side, Malaysia’s palm oil inventories fell for a third straight month in March, reaching a seven-month low. In addition, Kuala Lumpur is weighing an expansion of biodiesel usage to alleviate fuel pressures amid the ongoing crisis.
In a key destination market, China, robust GDP growth in the first quarter of 2026 also provided some support. However, the sustainability of this momentum remains in question, with structural demand–supply imbalances and fragile external conditions likely to pose ongoing headwinds.
