FX.co ★ Palm Oil Extends Gains After Holiday Break

Malaysian palm oil futures rose for a second consecutive session, holding above MYR 4,500 per tonne as trade resumed after the holiday break. Prices were supported by a weaker ringgit, expectations of softer Malaysian production, and strength in rival edible oils on the Dalian and Chicago exchanges. At the same time, crude oil prices climbed on heightened Washington–Tehran tensions despite ongoing peace talks, indirectly bolstering palm oil through its role as a biodiesel feedstock.

In parallel, top producer Indonesia plans to route key commodity exports, including palm oil, through a state-owned enterprise starting in September, a shift that could favor Malaysian palm oil shipments. Still, upside was limited by uncertainty over demand from India, the world’s largest importer, after the country’s palm oil purchases slumped 26% in April to a four-month low. Weak external demand added further pressure, with cargo surveyors reporting that Malaysian palm oil exports for May 1–25 were down between 14.5% and 18.0% from the same period in April.