FX.co ★ Palm Oil on Track for Modest Weekly Rise

Malaysian palm oil futures are trading near MYR 3,850 per tonne, effectively breaking a two-session decline as indications of increased export demand arise. According to cargo surveyors, palm oil shipments between May 1 and 20 rose by 1.6% to 5.3% compared to the same timeframe in April. Optimism is further bolstered by the anticipated recovery of palm oil purchases from India, the largest buyer, which are expected to pick up in May after remaining below average since December. For the week, futures are on track for a modest gain of about 0.8%, rebounding from previously subdued trading. However, potential further increases remain restrained due to caution ahead of upcoming production data from the Malaysian Palm Oil Association, due to be released either later today or early next week. Additionally, the Southern Peninsular Palm Oil Millers' Association noted a 3.7% increase in output within the first 20 days of May. The Malaysian Palm Oil Council also anticipates continued production growth from May through September, following a robust increase in April, which was initially spurred by delays in harvesting during March caused by monsoon conditions.