FX.co ★ Palm Oil Snaps Two-Session of Losses

Malaysian palm oil futures experienced a modest increase, advancing approximately 1% to exceed MYR 3,850 per tonne. This rise interrupted a two-day decline and was driven by indications of growing export activity. Reports from cargo surveyors suggest that shipments of Malaysian palm oil products between May 1 and May 15 increased by a range of 6.6% to 14.2%. The significant price disparity between palm oil and soybean oil also contributed to opportunistic buying. In India, the largest importer, there is potential for a rebound in palm oil imports, which have been underperforming since December, starting in May. Despite this positive outlook, the upward movement was constrained by concerns that demand from China, a crucial consumer, may remain subdued. Chinese purchasers are reportedly continuing to restock to cover essential needs without significantly increasing import volumes. Concurrently, in Indonesia, the leading producer, an industry association has urged the government to postpone a proposed increase in the palm oil export duty, cautioning that such a move could adversely affect competitiveness amid global trade challenges, including U.S. tariffs and geopolitical tensions.