FX.co ★ Palm Oil Begins the Week on Bearish Note

Malaysian palm oil futures have declined by approximately 1%, falling below MYR 4,200 per tonne. This downturn comes after gains made in the preceding two sessions, as traders express uncertainty regarding the sustained impact of the U.S. 90-day tariff suspension. Additionally, market caution is mounting in anticipation of China's GDP figures for Q1 2025, due later this week, amid expectations of a slowdown attributed to various pressures, including trade-related challenges. On the production front, output is anticipated to increase as plantation operations normalize following recent holidays. Nonetheless, losses were mitigated by export estimates from cargo surveyors, which indicated a significant rise in Malaysian palm oil shipments—up by 29.3% to 52.8% month-on-month in the first ten days of April. Meanwhile, in India, a leading consumer, palm oil imports saw a 14% increase in March from the previous month, reaching 424,599 tonnes. This growth is poised to continue as inventory levels have been drawn down, according to the Solvent Extractors' Association of India (SEA).