FX.co ★ Palm Oil Slips on Stronger Ringgit and Weak Export Demand

Malaysian palm oil futures traded just below MYR 4,500 per tonne, easing from recent highs as a firmer ringgit and weaker edible oil prices in Dalian and Chicago dampened market sentiment. A steep decline in crude oil prices, driven by tensions in the Middle East, further eroded palm oil’s attractiveness as a biodiesel feedstock. Pressure also came from export data, with cargo surveyors reporting that shipments fell by 30.7%–38.9% in the first ten days of April compared with the same period in March, pointing to softer near-term demand. Even so, the downside was limited by expectations that top buyer India may step up purchases ahead of its seasonal demand period, following a 19% drop in March imports to a three-month low. In China, palm oil imports climbed to their highest level in more than four years, underscoring the strength of underlying demand. At the same time, Malaysian data showed that inventories declined for a third consecutive month to a seven-month low. Separately, Indonesia ordered downstream palm oil producers to obtain industry certification by March 2027, underscoring the global drive toward sustainable sourcing.