FX.co ★ Palm Oil Snaps Four-Session Winning Streak

Malaysian palm oil futures decreased by over 1% to dip below MYR 3,900 per tonne, marking their first decline in five sessions as traders exercised caution ahead of export data for the period of May 1–15. The Malaysian Palm Oil Council (MPOC) reported that April stocks had increased by 19.4% from March, reaching a six-month peak of 1.87 million tonnes. Production climbed to 1.69 million tonnes, the highest in five months, while domestic consumption fell. Concurrently, Indonesia, the leading producer, plans to increase its crude palm oil export levy to 10% from the current 7.5% of the reference price starting May 17, in order to bolster its expanded biodiesel initiative. Although this move is likely to support prices in the long term, it has been eclipsed by weakened demand and rising stockpiles. In India, the world's largest consumer, data showed a 24.29% decrease in palm oil imports in April compared to March, totaling 321,446 tonnes. Mitigating further losses was a significant easing of the US-China trade tensions following the Geneva Agreement and Beijing's decision to lift key export and investment restrictions.