FX.co ★ Palm Oil Plunges to Over 6-Month Low

Malaysian palm oil futures experienced a decline of over 2%, dropping below MYR 4,100. This downturn has continued since early April, marking their lowest point since late September 2024 amid mounting tariff disputes. U.S. President Donald Trump proceeded with imposing tariffs of up to 104% on Chinese imports, effective April 9, criticizing Beijing for their handling of the issue. Market participants are closely watching for this week's release of monthly data from the Malaysian Palm Oil Board. According to Reuters, projections indicate that March stocks have increased for the first time in six months, alongside a 10.3% rise in production, reaching 1.31 million tonnes. In Indonesia, the leading producer, initiatives to adjust crude palm oil export taxes to counterbalance U.S. tariffs have raised expectations of a higher global supply, exerting downward pressure on prices and heightening competition with Malaysia. At the same time, crude oil prices have plummeted to a four-year low, influenced by abundant supply and diminished demand. In India, March imports rose by 13.2% compared to the previous month but remained below the usual levels. Offering some resistance to further declines, cargo data revealed that March exports increased by 0.4%, reaching 3.92% month-on-month.