FX.co ★ Palm Oil Extends Falls But Heads for Weekly Gains

Malaysian palm oil futures lingered just below MYR 3,900 per tonne, indicating a second consecutive decline following a report from the Solvent Extractors' Association of India. This report revealed a 24.29% decrease in palm oil imports by the world's largest consumer, with April figures at 321,446 tonnes. Market participants also exercised caution in anticipation of critical economic data from China expected next week, such as figures on industrial production, retail sales, and unemployment rates. In the meantime, optimism regarding U.S.-China trade negotiations diminished due to concerns over tariff-induced disruptions to global supply chains. Furthermore, Indonesia, a leading palm oil producer, plans to increase its crude palm oil export levy from 7.5% to 10% starting May 17 to bolster a higher biodiesel mandate. Despite these developments, palm oil contracts are poised for robust weekly gains, having risen over 1% thus far and potentially ending a three-week losing streak, driven by better export forecasts. Estimates from cargo surveyors suggest that shipments of Malaysian palm oil products from May 1–15 increased by 6.6% to 14.2%.