Malaysian palm oil futures fell below MYR 4,800 per tonne on Tuesday, breaking a three-session rally as traders booked profits, the ringgit strengthened, and soyoil prices weakened on both the Dalian and Chicago exchanges. Market participants also turned cautious ahead of full-month March export data due later today, after a series of strong readings. Signals from top buyer India softened, with March imports estimated at 680,000 tonnes, down from 847,689 tonnes in February, adding further downside pressure. Indian regulators extended the suspension of derivatives trading in several key agricultural commodities, including crude palm oil, through March 2027, a move that could dampen trading activity.
Despite the pullback, palm oil futures remain on course for a strong monthly gain of about 17.6%, the largest since April 2022, supported by a rally in crude oil prices amid persistent tensions in the Middle East. In China, a major buyer, manufacturing activity improved following the Spring Festival, bolstering demand prospects. Meanwhile, Indonesia, the leading supplier, reiterated its intention to implement the B50 biodiesel mandate this year.