17.04.202605:21:29UTC+00Palm Oil on Track for Second Straight Weekly Drop

Malaysian palm oil futures hovered just below MYR 4,500 per tonne on Friday and were on track for a second straight weekly decline, down about 1.4% so far. The market was weighed down by weaker soyoil prices on the Chicago Board of Trade and subdued export activity, with cargo surveyors reporting that shipments for April 1–15 dropped by more than 34% month-on-month amid lackluster festive demand. An easing of tensions in the Middle East also pressured crude oil prices, curbing overall risk appetite.

Losses, however, were limited by a softer ringgit and firmer edible oil prices on China’s Dalian Commodity Exchange. On the demand front, purchases from India—the world’s largest buyer—are expected to recover after that country’s palm oil imports fell 19% in March to a three-month low. Supply fundamentals remained broadly supportive, with Malaysian palm oil inventories declining for a third consecutive month to a seven-month low.

Looking ahead, domestic consumption is set to increase: Malaysia’s palm-based biodiesel use is projected to grow by more than 300,000 tonnes annually, according to the Malaysian Palm Oil Board. The country is moving in tandem with top producer Indonesia by strengthening biodiesel blending mandates in an effort to reduce dependence on imported energy.