Malaysian palm oil futures edged down to MYR 4,110 per tonne on Friday, pulling back after a strong rally in the previous session, pressured by weaker Chicago soyoil and a stronger ringgit. Trading activity was relatively subdued, with China’s Dalian exchange closed for the Spring Festival. Export worries intensified after AmSpec Agri Malaysia reported that Malaysian palm oil shipments for February 1–20 fell 12.6% from January, signaling softer demand even as Ramadan begins and ahead of the Eid al-Fitr celebrations.
Despite the day’s decline, futures are on track for a 1.4% weekly gain, breaking a two-week losing streak. Support came from robust demand in India, the largest buyer, where January palm oil imports jumped 51% month-on-month to a four-month high. On the supply side, Malaysian inventories fell 7.7% and production dropped 13.8%, tightening market conditions. In Indonesia, the world’s top producer, a new U.S. trade agreement maintained a reduced 19% tariff—well below the initially proposed 32%—and granted tariff-free access for select commodities, including palm oil.
