18.03.202603:35:43UTC+00Palm Oil Extends Decline

Malaysian palm oil futures fell for a second straight session on Wednesday, trading just below MYR 4,550 per tonne, pressured by a stronger ringgit and weakness in rival edible oils on the Dalian and Chicago exchanges. At the same time, industry veteran Dorab Mistry warned that global edible oil markets remain highly volatile: disruptions in Middle Eastern energy supplies are lifting expectations for biodiesel demand, but subdued buying from key importers is clouding the outlook. Geopolitical risks, including the potential postponement of the Trump–Xi summit scheduled for later this month, also weighed on sentiment.

Losses were limited, however, by signs of robust demand. Cargo surveyors reported that shipments for March 1–15 jumped by 43.5%–56.9% month-on-month, driven by Eid-related buying. In addition, palm oil imports by India, the world’s largest buyer, rose 11% in February to a six-month high, supported by discounts relative to competing oils. Meanwhile, top producer Indonesia is considering new commodity taxes, including levies on palm oil, to keep its budget deficit within 3% of GDP—an initiative that could tighten global supply.