FX.co ★ Palm Oil Set to Finish Week on Bearish Note

Malaysian palm oil futures experienced an uptick, settling around MYR 4,015 per tonne, effectively breaking a four-session declining streak due to indications of robust demand. Recent data from cargo surveyors indicated that Malaysian palm oil exports increased by 13.6% to 17.0% month-on-month in the first half of April. Concurrently, Malaysia's overall export growth reached a three-month peak in March, with palm oil shipments showing a slight year-on-year increase, although they moderated compared to February's figures. In the broader energy sector, crude oil prices escalated due to concerns over tightened global supply following the U.S.'s imposition of new sanctions on Iranian oil exports. In India, the largest buyer, palm oil imports surged by nearly 14% in March, with expectations of further rises in the upcoming months driven by declining inventories and the forthcoming holiday season. Despite this, futures are on course to register a third consecutive weekly loss, dropping approximately 4.7%, influenced by apprehensions regarding the ramifications of U.S. trade policy. Market pressure is anticipated to intensify after the expiration of the 90-day tariff pause.