FX.co ★ Palm Oil Trades Higher Amid Rising Crude Prices

Malaysian palm oil futures were trading around MYR 4,480 per tonne, having briefly dipped below MYR 4,440 in the previous session. Prices tracked strength in Dalian palm oil contracts and gains in soyoil on the Chicago Board of Trade. The market also drew support from firmer global crude oil prices, amid renewed tensions between the US and Iran that lifted energy markets.

On the demand side, buying interest from India, the world’s largest palm oil importer, is expected to rebound following a 19% decline in March shipments. Domestically, Malaysia’s palm-based biodiesel consumption is forecast to increase by more than 300,000 tonnes per year, according to the industry regulator, as the country moves in step with Indonesia to advance blending mandates and curb dependence on imported fuels.

Upside, however, remained limited after Statistics Malaysia reported a modest decline in March exports of palm oil and related products, underscoring softer demand after the festive period. In separate data, cargo surveyors indicated that palm oil shipments for April 1–15 slumped by more than 34% month-on-month.