FX.co ★ Palm Oil Rises After Three Sessions of Losses

Malaysian palm oil futures have risen above MYR 4,200 per tonne, recovering from a recent low of MYR 4,163 per tonne, effectively breaking a three-day downward trend. This resurgence is attributable to increased bargain-hunting activity. Confidence in the market was further bolstered by a rebound in crude oil prices. The recent decline in oil was largely due to apprehensions about U.S. tariffs potentially dampening demand and precipitating a global recession. In India, the largest palm oil consumer, imports rose by 13.2% month-over-month in March, though they remained below typical levels for the fourth consecutive month. On the export side, cargo surveyors reported an increase in Malaysian palm oil shipments ranging from 0.4% to 3.92% in March. Nevertheless, these gains were tempered by a cautious atmosphere in anticipation of the forthcoming monthly data release from the Malaysian Palm Oil Board. According to a Reuters forecast, March saw the first rise in palm oil stocks in six months, as production climbed by 10.3% to reach 1.31 million tonnes. Additionally, the return of workers to plantations after the Eid-ul-Fitr holiday has contributed to concerns about increasing output.