FX.co ★ Palm Oil Drops for 3rd Session

Malaysian palm oil futures have declined to below MYR 3,920 per tonne, marking a third consecutive session of losses due to persistent concerns about increasing production and stock levels. Market participants also focused on the latest April Manufacturing PMI data from China, a key buyer, which indicated the most significant decline in over a year as new U.S. tariffs affected the economy. Meanwhile, in the broader energy sector, crude oil prices continued to fall, driven by fears that U.S. trade policies might hinder global growth and reduce demand. However, these losses were somewhat mitigated by evidence of robust exports, with reports from cargo surveyors showing a 13.8%–14.8% increase in shipments from April 1–25 compared to the previous month. In India, palm oil demand is anticipated to recover in April following five months of reduced buying, as refiners take advantage of price corrections to rebuild their inventories. Additionally, India's vegetable oil industry has called on the government to widen the import tariff differential between crude and refined oils, a move that could boost the demand for crude palm oil and support prices globally.