FX.co ★ Palm Oil Set for Second Straight Weekly Decline

Malaysian palm oil futures have dipped below MYR 3,800 per tonne, reversing the prior session’s significant rally, as expectations of a production rebound fueled concerns over a potential inventory surplus. This price movement brings valuations close to their lowest point in eight months, as market participants exercise caution in anticipation of next week’s monthly data release from the Malaysian Palm Oil Council. According to Reuters, it is estimated that April stocks have likely risen for the second consecutive month, with production increasing by 16.9% to its highest level since November. Over the week, futures have declined by more than 2%, suggesting the possibility of a second consecutive weekly loss. However, these losses have been mitigated by trade data from China, a key importer, which indicated strong export performance despite a slight decrease in imports. Meanwhile, the first official U.S.-China trade talks are scheduled to take place over the weekend in Switzerland. President Trump has suggested that tariffs on Chinese goods might be lowered if the discussions progress favorably. In India, the largest consumer, buyers may seize the opportunity presented by low prices to replenish stocks following five months of reduced demand.