Malaysian palm oil futures climbed above MYR 4,120 per tonne on Wednesday, breaking a four-session losing streak and rebounding from a near three-week low hit in the previous session. The recovery was supported by bargain hunting, a weaker ringgit, and stronger soyoil prices on the Chicago Board of Trade.
On the demand side, palm oil purchases by top buyer India jumped 51% month-on-month in January to a four-month high, reversing December’s steep decline as refiners moved to rebuild stocks. Monthly data from the Malaysian Palm Oil Board showed exports rising 11.4% from the previous month, likely boosted by restocking ahead of Ramadan in mid-February and Eid-ul-Fitr in March.
At the same time, inventories fell 7.7% as output dropped 13.8%, tightening overall supply. However, further gains were limited by expectations of softer demand from China this year, as buyers there increasingly opt for relatively cheaper soybean and canola oils. A marked slowdown in China’s January inflation also pointed to subdued domestic demand, reinforcing caution over the export outlook.
