FX.co ★ Palm Oil Rises 4th Session Despite Stock and Production Concerns

Malaysian palm oil futures hovered around MYR 3,890 per tonne, registering gains for a fourth straight session. This rise is attributed to stronger competing oils on the Dalian exchange and an uptick in crude oil prices. Additionally, the weakening ringgit enhanced palm oil's appeal to international buyers. In terms of exports, cargo surveyors observed a 7.3% rise in Malaysian palm oil product shipments from May 1st to 25th, compared to the same timeframe in April. Import activity in major buyer India is anticipated to rebound after a quiet period since December. Despite this upward trend, prices remain close to their lowest in over seven months, as traders expect an increase in stockpiles and anticipate May’s production to meet or exceed that of April. Concurrently, the Malaysian Palm Oil Council forecasted ongoing production growth from May to September, spurred by replanting, favorable weather, and improved agricultural practices, with smallholders playing a significant role.