FX.co ★ Palm Oil Tumbles to 6-1/2-Month Low

Malaysian palm oil futures fell nearly 2% to dip below MYR 4,030 per tonne, registering a third consecutive session of significant declines. The downward trend has been largely driven by growing concerns that prices may remain subdued with the impending end of U.S. tariff relief after a three-month period. The futures hit their lowest point in six and a half months, as the economic outlook in China, a key buyer, becomes increasingly bleak due to heightened trade pressures from the United States under President Donald Trump. This decline comes despite first-quarter GDP figures that exceeded expectations. The negative movement in prices was somewhat mitigated by cargo surveyor data indicating Malaysian exports increased between 13.6% and 17.0% compared to the previous month for the first half of April. In light of the U.S. trade challenges, Malaysia is making active efforts to enhance exports to South Africa and the Middle East. Meanwhile, palm oil imports in India rose by nearly 14% in March, with potential for further increases as stock levels diminish. Additionally, the Malaysian Palm Oil Board has kept the crude palm oil export tax for May at 10% while reducing the reference price, as outlined in their recent circular.