Malaysian palm oil futures slipped below MYR 4,070 per tonne on Monday, reversing the prior session’s rally amid profit-taking and a firmer ringgit. Sentiment weakened after China, a key buyer, cut import tariffs on Canadian canola to 15% from 84%, raising the prospect of cheaper substitutes and intensifying competition across edible oils. December’s soft consumer demand in the mainland also underscored a fragile recovery, driving China’s weakest Q4 GDP growth in three years despite continued stimulus. In top supplier Indonesia, the government canceled plans for a B50 biodiesel mandate this year, tempering demand expectations. Caution grew ahead of Jan. 1–20 export estimates due later this week. Still, losses were capped by optimism that seasonal demand from the Lunar New Year and Ramadan, together with lower output in coming months, will lend support. Meanwhile, demand from India, the world’s largest buyer, may rebound in January after falling to an eight-month low in December.
