Malaysian palm oil futures have stabilized above MYR 4,250 per tonne, halting a previous three-session decline. This comes as apprehensions surrounding U.S. tariffs have diminished, following President Trump's indication of potential exemptions for select countries ahead of the upcoming tariff implementation next week. Additionally, weather-related uncertainties have provided a boost to prices. Meteorological forecasts suggest a possible shift from a La Niña to a neutral El Niño phase between March and May, which could impact palm oil production yields.
On the demand front, there is an anticipated increase in orders from Africa, with Egypt, Kenya, and Nigeria contributing significantly. Nonetheless, price increases were limited due to tepid export figures. Analysts estimate that shipments from March 1-25 have fallen by 8.1% to 8.5% compared to February, based on cargo surveyor reports. In India, palm oil's proportion of total edible oil imports has decreased to 43% in the first four months of the current marketing year, down from 66% the previous year. In the meantime, Russia—a major purchaser of Indonesian palm oil—has reduced its intake to a historic low of 795,000 tons anticipated in 2024, marking the third consecutive year of decline.
