Malaysian palm oil futures extended gains, hovering above MYR 4,650 per tonne and notching a three-week peak. The upside was supported by a weaker ringgit and optimism over Malaysia’s biodiesel policy. Kuala Lumpur is reportedly set to roll out B15 biodiesel, from the current B10, starting June 1, with 19 plants expected to begin production, a move aimed at reducing reliance on fossil fuel imports amid soaring oil prices. However, gains were capped by weaker demand signals. Imports in key buyer India fell 27% to a one-year low in April, as higher prices narrowed palm oil’s discount to rival oils and discouraged purchases. Export trends also softened, with cargo surveyors reporting shipments for April 1–25 dropped 15.7%–16.8% from March, reflecting typical post-festive weakness. Additional pressure came from rising supply, as top producer Indonesia exported 5.85 million tonnes of crude and refined palm oil in the January–March period, up 9.3% yoy, according to official data.

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