FX.co ★ Palm Oil Reverses Early Gains to Trade Below MYR 3,900

Malaysian palm oil futures experienced a decline of approximately 1%, dropping below MYR 3,900 per tonne, effectively reversing earlier gains and extending the losing streak to four consecutive sessions. Market sentiment has soured amid growing expectations that April stocks could increase further, following a rise in March to 1.56 million tonnes—the first in seven months. The contract is on course to conclude the week with an approximate 4% decline, mainly due to concerns over elevated production following delays in February's harvest. However, the decline was somewhat softened by indications of a thaw in the U.S.-China trade tension, as Beijing expressed a willingness to engage in renewed discussions with Washington. In terms of exports, April shipments are anticipated to display strong growth, with cargo surveyors citing an increase of 13.8%–14.8% for the period of April 1–25 compared to the previous month. Additionally, the Malaysian Palm Oil Council has noted that consumers in China are expected to boost imports in May and June to replenish stocks ahead of the summer, a time when demand typically escalates. India is also projected to replenish its inventories, aided by a narrowing price differential with soybean oil.