FX.co ★ Palm Oil Rebounds to One-Month High

Malaysian palm oil futures traded above MYR 4,200 per tonne on Thursday, recovering from a modest decline in the previous session to touch a one-month high. Market sentiment was supported by firmer soyoil prices on the Chicago Board of Trade and strength in energy markets, as persistent tensions in the Middle East fueled expectations that crude oil prices may remain elevated.

Demand prospects improved after palm oil imports by India, the world’s largest buyer, rose 10.1% month-on-month in February to a six-month high, helped by wider discounts to competing edible oils. At the same time, Reuters estimated that Malaysia’s palm oil inventories fell for a second consecutive month in February to a four-month low, as seasonal declines in production more than offset softer exports.

However, further gains were limited after cargo surveyors reported that February exports dropped by 21.5%–22.5% from January, despite stockpiling ahead of Eid al-Fitr. In China, a key consumer, the 2026 GDP growth target was set at a more modest 4.5%–5%, the first downward revision since 2023, heightening concerns that slower economic momentum could dampen demand for vegetable oils, including palm oil.