FX.co ★ Palm Oil Rises but Heads for Weekly Decline

Malaysian palm oil futures experienced a modest increase, climbing above MYR 3,920 per tonne, thus ending a three-session decline. This uptick coincided with traders returning from a break amidst improving U.S.-China trade dynamics, as Beijing's willingness for discussions with Washington boosted market morale. Additionally, robust export figures fueled investor optimism, with cargo surveyors noting an increase in shipments by 13.8% to 14.8% between April 1 and April 25, compared to the previous month. The Malaysian Palm Oil Council (MPOC) anticipated a rise in imports by Chinese mainland consumers in May and June as they prepare for heightened summer consumption. Similarly, India, a major buyer, is likely to capitalize on current low prices to restock, given the narrowing price differential between palm oil and soybean oil. Despite these favorable conditions, futures are on track to conclude the week approximately 3% lower, as persisting worries over global trade challenges suggest that a robust rally in vegetable oil prices remains improbable.