Malaysian palm oil futures rose to above MYR 4,120 per tonne on Wednesday, snapping a four-session slide and recovering from a near three-week low notched in the prior session. The upturn was driven by bargain hunting, a weaker ringgit, and firmer soyoil prices on the Chicago market. Meanwhile, palm oil purchases by top buyer India surged 51% mom in January to a four-month high, reversing December’s sharp drop as refiners rebuilt inventories. Monthly data from the Malaysian Palm Oil Board showed exports climbed 11.4% mom, likely lifted by restocking ahead of Ramadan in mid-February and Eid-ul-Fitr in March. Meanwhile, inventories fell 7.7% as production fell 13.8%, tightening supply. However, gains were capped by expectations of softer demand from China this year, where buyers are increasingly turning to relatively cheaper soybean and canola oils. A sharp slowdown in China’s January inflation also signaled subdued domestic demand, adding to caution over the export outlook.
