Malaysian palm oil futures inched higher on Tuesday, trading around MYR 4,150 per tonne and extending gains for a third consecutive session. A weaker ringgit, along with stronger performances in edible oil markets in Dalian and Chicago, helped underpin prices. The rally in crude oil, driven by escalating U.S.–Israeli tensions with Iran, offered additional support.
In top-buying country India, palm oil imports in February rose 10.1% month-on-month to a six-month peak of 844,000 tonnes, driven by restocking demand. Meanwhile, Indonesia, the world’s largest producer, reported a 77.1% year-on-year surge in January exports of crude and refined palm oil, and raised its crude palm oil export levy to 12.5% of the reference price to help finance its biodiesel program.
On the export front, however, cargo surveyors indicated that Malaysia’s February palm oil shipments fell by 21.5% to 22.5% from January, despite typically stronger seasonal demand ahead of the Eid al-Fitr holiday. Market participants also remained cautious ahead of China’s PMI releases, amid concern that business activity may have been dampened by disruptions linked to the Spring Festival in this key importing market.
