FX.co ★ Palm Oil Kicks Off the Week Higher

Malaysian palm oil futures experienced a modest increase on Monday, stabilizing above MYR 4,170 per tonne after two consecutive sessions of notable declines. The market found support from the gains in soyoil prices on both the Chicago and Dalian exchanges as traders anticipated the release of monthly data from the Malaysian Palm Oil Board, scheduled for Tuesday. The positive sentiment was further reinforced by stronger export figures, with cargo surveyors reporting a 14.9%–17.9% month-on-month rise in January shipments. This increase was attributed to restocking activities ahead of the Spring Festival and Ramadan. Additionally, demand from India, the leading buyer, showed improvement, with January imports surging 51% to reach a four-month high following a decline in December. Meanwhile, Reuters suggested that Malaysia's palm oil inventories likely halted their 10-month growth streak in January due to robust exports coinciding with a seasonal dip in production. However, the market's gains faced limitations due to a stronger ringgit and declining crude oil prices, as concerns about supply disruptions eased. Investors remained cautious ahead of the upcoming release of CPI and PPI data from China, a key consumer, expected later in the week.