FX.co ★ Palm Oil Falls Amid Tariff Concerns and Possible Supply Increase

Malaysian palm oil futures remained slightly under MYR 4,500 per tonne, interrupting a four-day ascent as traders adjusted to the implications of new tariffs announced by U.S. President Donald Trump on significant trading partners. The prices pulled back from a two-week peak reached the previous day, driven by worries over increased production as plantation workers in Malaysia returned post-Eid-ul-Fitr celebrations. This bearish atmosphere was compounded by a slump in crude oil prices, sparked by fears that a global trade conflict could reduce energy demand. Nonetheless, the decline was tempered by reports from cargo surveyors indicating that Malaysian palm oil exports increased by 0.4% to 3.92% in March. Simultaneously, in the U.S., a group of oil and biofuel industry leaders has advocated for raising biomass diesel mandates to between 5.5 billion and 5.75 billion gallons, an increase from the current 3.35 billion, citing that the existing target does not reflect the industry's full capacity. Looking forward, the Malaysian Palm Oil Council (MPOC) anticipates price stabilization in the short term, fueled by a resurgence in demand from major markets such as India.