Palm Oil Jumps to Highest in Over a Year on Crude Oil Rally
Malaysian palm oil futures surged over 7% to around MYR 4,680 per tonne on Monday, rising for a third session and hitting their highest level in over a year. Gains were driven by expectations that soaring crude oil prices would boost demand for biodiesel feedstocks, alongside support from a weaker ringgit and firmer edible oils in Dalian and Chicago. Demand prospects also improved after February imports rose by top buyer India rose 10.1% mom to a six-month high in February, aided by wider price discounts to rival oils. Meanwhile, Reuters projected inventories likely fell for a second month to a four-month low in February. In China, another key buyer, consumer prices rose in February on Lunar New Year demand, potentially supporting food consumption. However, upside was capped as cargo surveyors estimated February exports dropped 21.5%–22.5% from January despite Eid al-Fitr restocking. Traders now await Malaysian Palm Oil Board data later this week for clearer supply signals.
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