24.04.202604:59:42UTC+00Palm Oil Market Set for First Weekly Rise in Three

Malaysian palm oil futures edged higher, trading near MYR 4,600 after a recent pullback and poised for their first weekly gain in three weeks. Prices drew support from a weaker ringgit and firmer crude oil amid renewed tensions in the Middle East, which bolstered demand for biodiesel-linked feedstocks.

The Malaysian Palm Oil Council expects prices to remain above MYR 4,500 in the near term, underpinned by elevated energy costs and potential El Niño-related supply risks. Expectations for stronger demand from top buyer India are also firming after that country’s palm oil imports in March fell 19% month-on-month, suggesting room for a rebound.

At the same time, Malaysia is advancing plans to raise its biodiesel mandate to B15 from the current B10. The higher blend could absorb as much as 1–1/2 million tonnes of palm oil annually, tightening domestic supply and aligning with broader regional efforts to reduce dependence on imported fossil fuels.

Upside, however, was limited by sluggish export performance. Cargo surveyor data showed that shipments from Malaysia between April 1 and 20 were down about 25.6%–25.8% from March. Additionally, softer imports of key commodities into China, particularly soybeans, may further pressure the broader edible oils complex.