FX.co ★ Palm Oil Under Pressure to Start the Week

Malaysian palm oil futures have plummeted more than 2% to fall below MYR 4,000 per tonne, wiping out gains from the previous session. This decline reflects renewed uncertainty surrounding trade negotiations between the U.S. and China. Treasury Secretary Bessent did not confirm President Trump's statement that talks with China were in progress, indicating he was unsure if President Trump had communicated with President Xi Jinping. Market sentiment was also affected by an increase in palm oil production in March, following delayed harvests in February due to adverse weather conditions, including rain and flooding. Concurrently, March stock levels reached 1.56 million tonnes, marking the first increase in seven months. However, losses were tempered by strong export forecasts, as cargo surveyor data indicated a rise between 13.8% and 14.8% in exports from a month earlier during the period of April 1–25. In India, one of the largest buyers, the vegetable oil industry is lobbying the government to broaden the import tariff differential between crude and refined oils, a strategy that could boost crude palm oil demand and bolster international prices.