FX.co ★ Palm Oil Set for Second Weekly Drop in a Row

Malaysian palm oil futures dipped below MYR 4,200 per tonne, reversing gains from the previous session. This decline comes amid expectations of increased production as plantations resume full activity post-holidays. Additionally, investors exhibited caution in anticipation of March trade data from key buyer China, slated for release over the weekend, as the ongoing trade tensions with the United States could begin to manifest. For the week, prices are set to record a second consecutive decline, currently down approximately 3.5%, with March palm oil imports by leading purchaser India remaining below average levels, despite a 13.2% increase from February. In the broader energy market, oil prices are also expected to drop for a second week in a row, driven by concerns that the extended US-China trade conflict might hinder crude demand by slowing global economic growth. However, mitigating further losses are indications of strong exports, with data from cargo surveyors indicating substantial increases in Malaysian palm oil shipments, which rose between 29.3% and 52.8% month-on-month in the first ten days of April.