FX.co ★ Palm Oil Extends Gains

Malaysian palm oil futures climbed for a second consecutive session, briefly trading above MYR 4,500 per tonne, supported by a weaker ringgit and stronger edible oil prices on the Dalian and Chicago exchanges. Market sentiment was further lifted by expectations of a recovery in Indian demand after shipments to the world’s largest buyer dropped 19% month-on-month in March.

At the same time, Malaysia is moving in line with top producer Indonesia to expand its biodiesel blending mandate, with the industry regulator forecasting that palm-based biodiesel consumption will rise by more than 300,000 tonnes per year.

Gains, however, were limited by softer crude oil prices, which typically dampen demand for biofuel-linked feedstocks. Export indicators also signaled weakness: cargo surveyors reported that Malaysian palm oil product shipments for April 1–20 were down between 25.6% and 25.8% from the previous month. In China, another key consumer, imports of major agricultural commodities—particularly soybeans—are expected to decline this year, reinforcing demand-side caution.