FX.co ★ Palm Oil Rises Amid Biofuel Sentiment, Supply Shifts

Malaysian palm oil futures traded near MYR 4,850 per tonne on Tuesday, rebounding from earlier losses as a weaker ringgit and stronger edible oil prices in Dalian and Chicago underpinned the market. A rally in crude oil, driven by heightened tensions after U.S. President Trump’s sharper rhetoric against Iran, further bolstered sentiment toward biofuel-linked commodities.

Supply-side developments also provided support. Indonesia, the world’s largest producer, recorded double-digit export growth in February ahead of the rollout of its B50 biodiesel mandate in July. In addition, Thailand moved to tighten crude palm oil export controls and introduced regulated prices for bottled cooking oil effective April 7.

On the trade front, cargo surveyor data indicated Malaysian palm oil shipments jumped by 44%–57% month-on-month, while a Reuters poll suggested inventories may have seen their sharpest drawdown in three years, pushing stockpiles to their lowest level since July. However, further gains were tempered by investor caution ahead of the release of official supply figures and China’s inflation data. Demand concerns also persisted after India’s palm oil imports fell 19% in March to a three-month low, as elevated prices continued to dampen buying interest.