FX.co ★ Palm Oil Rises for 3rd Session

Malaysian palm oil futures experienced a modest increase, maintaining a level above MYR 3,900 per tonne and building on advances for the third consecutive session. Investors considered insights from the Malaysian Palm Oil Council (MPOC), anticipating prices to fluctuate between MYR 3,750 and MYR 4,050 in May, with a gradual recovery expected amidst persistent volatility in the vegetable oil and energy sectors. Regarding exports, cargo surveyors noted an increase in shipments of Malaysian palm oil products by 1.6% to 5.3% from May 1 to 20, compared to the same timeframe in April. Nevertheless, the upward trend faced constraints due to MPOC's projection of a moderate production increase from May to September. This is attributed to a high base effect following April's production surge, which resulted from postponed harvesting in early March because of the monsoon season. Additionally, the absence of significant progress on new trade agreements curbed further momentum, as the U.S. shows no urgency in concluding deals following substantial agreements with China and the UK.