FX.co ★ Palm Oil Set to Finish Week on Upbeat Note

Malaysian palm oil futures experienced a significant increase of approximately 2.5%, surpassing MYR 4,100 per tonne. This upswing comes after a lackluster performance in the previous session, bolstered by insights from the Malaysian Palm Oil Council (MPOC), suggesting that demand from primary buyers such as China and India might rise in the upcoming months. Specifically, China is anticipated to boost imports in May and June to restock inventories ahead of the summer season, while India may seize the opportunity presented by current pricing to replenish its stockpiles. For the entire week, these futures are projected to gain close to 4%, breaking a three-week downward trend, amid indications of robust export activity. Cargo survey data indicated that Malaysian palm oil shipments increased between 11.9% and 18.5% in the first 20 days of April compared to the same timeframe in March. Adding to the positive market sentiment, U.S. President Trump's endorsement of a trade agreement with China that circumvents tariffs of nearly 145% helped soothe global market nerves. Nevertheless, these gains were tempered by the anticipation of higher production levels as plantation activities intensify, coupled with caution regarding the July expiration of the U.S. tariff pause.