FX.co ★ Bearish Momentum in Palm Oil Persists

Malaysian palm oil futures declined approximately 1.0%, falling below MYR 4,300 per tonne. This marks the third consecutive session of losses, influenced by escalating global trade tensions that have heightened concerns about a potential recession and slowed economic growth, which could adversely impact demand. Market participants exercised caution as they awaited the release of monthly data from the Malaysian Palm Oil Board, expected later this week. According to Reuters, March's palm oil inventories might have increased for the first time in six months, with production surging by 10.3% to 1.31 million tonnes. Furthermore, the return of workers to plantations following the Eid-ul-Fitr holiday has contributed to apprehensions about an increase in output. In the energy sector, crude oil prices fell nearly 2% amid ongoing US-China trade tensions, further adding to fears of a recession. Meanwhile, India's palm oil imports rose by 13.2% in March compared to the previous month, though they remained below average for the fourth consecutive month, as refiners opted for soyoil due to its more favorable pricing. However, further declines were mitigated as cargo surveyors estimated that Malaysian palm oil exports increased by between 0.4% and 3.92% in March.