Palm Oil Heads for First Weekly Rise Since Late April

Malaysian palm oil futures hovered around MYR 4,500 per tonne, recovering from recent losses as a weaker ringgit and firmer soyoil prices in Chicago lifted sentiment. Gains in crude oil prices also lent support, amid fading hopes for a breakthrough in U.S.-Iran peace talks. Meanwhile, top producer Indonesia plans to establish a centralized export agency for key commodities, including palm oil, raising concerns over possible supply disruptions during the transition period while potentially benefiting Malaysia’s palm oil sector. For the week, contracts are heading for a solid gain of near 2%, reversing drops in the prior three weeks. However, the upside was capped by weak exports, with cargo surveyors noting palm oil shipments for May 1–20 fell between 13.9% and 20.5% from the same period in April. In India, the world’s largest palm oil buyer, imports dropped 26% in April to a four-month low, due to softer institutional demand and a narrowing price discount against competing edible oils.
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