FX.co ★ Palm Oil Rises for 4th Session

Malaysian palm oil futures have seen a notable increase, climbing over 2% to exceed MYR 3,950 per tonne. This marks the fourth consecutive session of gains, fueled by heightened optimism surrounding U.S. trade negotiations. President Trump has indicated the possibility of securing tariff agreements with India, Japan, and South Korea, building on successful discussions with China and the United Kingdom. Prices are currently at a two-week high, supported by the latest data from the Malaysian Palm Oil Council (MPOC), which revealed a 9.6% increase in exports in April, reaching 1.1 million tonnes, marking the second consecutive month of growth. However, industry regulator figures also highlighted a significant rise in palm oil stocks, which jumped 19.4% in April compared to March, reaching a six-month peak of 1.87 million tonnes. This increase in inventory levels is likely to temper further price advances. Additionally, production has risen to 1.69 million tonnes, the highest in five months, while domestic consumption has declined. Looking forward, palm oil imports from India, the top consumer, might recover after being below average since December, as palm oil is now priced more competitively compared to soyoil. This could encourage additional purchases from May onwards.