Malaysian palm oil futures climbed about 1.5% to above MYR 4,800 per tonne, reversing earlier losses. The rally was supported by strength in Chicago soyoil and firmer crude oil prices, which boosted biodiesel margins. Energy markets found support after U.S. President Donald Trump, in a national address, vowed to maintain pressure on Iran’s energy sector without providing a clear timeline for resolving the situation.
On the demand side, cargo surveyors estimated that March palm oil exports jumped between 44% and 57% from February, lending short-term support to prices. However, upside was limited by a stronger ringgit and weaker demand from key buyer India, where imports are expected to decline to around 680,000 tonnes in March from 847,689 tonnes in February.
In Indonesia, the world’s largest palm oil producer, demand for biodiesel feedstock is projected to reach 15 million tonnes this year, an increase of 2 million tonnes, driven by the planned rollout of the B50 mandate in July.