30.04.202604:18:40UTC+00Palm Oil Rises Further, Yet Set for Monthly Decline

Malaysian palm oil futures extended their advance, holding above MYR 4,600 per tonne, supported by a weaker ringgit and firmer prices for edible oils on the Dalian and Chicago exchanges. Near-term sentiment remains positive, with the Malaysian Palm Oil Council expecting prices to stay above MYR 4,500, underpinned by elevated energy costs and potential El Niño–related supply risks.

In Indonesia, the world’s largest producer, output is forecast to decline by up to 2 million metric tons this year due to dry weather and rising fertilizer costs, adding to supply concerns. Nonetheless, palm oil contracts are on track to record a loss for April, currently down about 4.5%, after nearly a 20% surge in March, as the market undergoes a natural correction.

The recent pullback has been driven mainly by softer exports. Cargo surveyors reported that shipments for April 1–25 were 15.7%–16.8% lower than in the previous month, reflecting typical post-festive demand weakness. At the same time, March inventories remained ample, even though they eased from February levels. Markets will be closed on Friday for the Labor Day holiday.