FX.co ★ Palm Oil Hovers at 2-Month Peak

Malaysian palm oil futures continued their upward trajectory on Tuesday, trading at approximately MYR 4,235 per tonne and sustaining a two-month peak. The rise was bolstered by stronger edible oil prices on the Dalian exchange and improved export forecasts. Cargo surveyors reported a 7.97% to 9.97% increase in Malaysian palm oil exports from January 1 to 25, compared to the same timeframe in December. Anticipation of heightened demand in preparation for the Lunar New Year and the upcoming Ramadan season in February further supported the price increase. Additionally, concerns about supply contributed, as January's output is expected to decline by 15%–17% due to seasonal factors. In India, which is the largest importer of palm oil globally, there is potential for import recovery in January following a 20% drop to the lowest levels since April 2025, attributed to reduced year-end demand. However, price gains were tempered by the appreciation of the ringgit, uncertainties stemming from President Trump's recent tariff policy on South Korea, and investor caution ahead of an impending U.S. interest rate decision later in the week, which continued to create apprehension in commodity markets.