FX.co ★ Palm Oil Hovers Above MYR 4,200

Malaysian palm oil futures saw an uptick of approximately 1.5%, rising above MYR 4,200 per tonne, as they attempted to counter the downward trend observed since the beginning of April. This shift in momentum was largely influenced by an improved market sentiment following US President Trump's announcement of a 90-day suspension of tariffs for all nations, with the exception of China. This decision alleviated fears of a global trade war and provided support to commodity prices, including palm oil. Prices recovered from their lowest in over six months, buoyed by data from the Malaysian Palm Oil Board that indicated a 0.91% month-on-month increase in exports for March, reaching 1.01 million tons. Despite these gains, futures have declined by over 2.5% for the week, marking a potential second consecutive weekly loss. This decline is attributed to expectations of increased output as plantation activities intensify following the holiday season. In India, the foremost importer, March palm oil imports grew by 13.2% yet fell short of typical volumes. New statistics from the industry regulator reveal that, by the end of March, inventories rose by 3.52% compared to February, reaching 1.56 million metric tons, while production surged by 16.76% to 1.39 million tons.