FX.co ★ Palm Oil Snaps Six-Session Losing Streak

Malaysian palm oil futures experienced a modest uptick, stabilizing close to MYR 3,920 per tonne following a decline over six consecutive sessions that led to a seven-month low. This upward movement was driven by bargain hunting and robust export projections. According to cargo surveyors, Malaysian palm oil shipments increased by 11.9% to 18.5% during the first 20 days of April compared to the same timeframe in March. Additionally, ongoing trade tensions between the US and China may lead Beijing to reduce its imports of US soybeans, thereby potentially increasing the demand for palm oil as a substitute. In Indonesia, the leading producer, exports of both crude and refined palm oil decreased by nearly 2% month-on-month in March due to a rise in domestic consumption during the fasting month, although total shipments reached a four-year peak. In India, industry statistics reveal an annual edible oil consumption of 25–26 million tonnes, with only 11 million tonnes produced domestically. However, the potential for further increases was limited by apprehensions about a surge in plantation output following the holidays and ongoing uncertainties regarding US tariffs.