FX.co ★ Palm Oil Rises for 3rd Session, Hits 7-Week High

Malaysian palm oil futures advanced for a third consecutive session on Thursday, nearing MYR 4,200 per tonne and reaching a seven-week high. The positive trend in edible oils on the Dalian and Chicago exchanges contributed to the upbeat sentiment. Additionally, there's an anticipation of stronger demand in the lead-up to the Lunar New Year and Ramadan in February. Concerns over supply were amplified with January production predicted to decline by 15% to 17% due to seasonal influences. On the export side, cargo surveyors reported an increase in shipments of 8.6% to 11.4% from January 1-20 compared to the previous month, further indicating strengthening demand. Meanwhile, long-term supply risks were highlighted by more stringent regulations on forest exploitation in Indonesia, the largest supplier. Globally, market sentiment improved after comments from U.S. President Trump alleviated concerns over a potential U.S.–Europe trade conflict. In a related development, the Malaysian Palm Oil Council forecasts prices to fluctuate between MYR 4,000 and 4,300 in February. However, gains were tempered by a stronger ringgit and Indonesia's cancellation of the B50 biodiesel initiative.