FX.co ★ Palm Oil Slips After Two-Day Rally

Malaysian palm oil futures dropped below MYR 4,030 per tonne, interrupting a two-day upward trend due to anticipated increases in output as plantation activities intensify. Market participants remain vigilant as attention turns to the impending expiration of the 90-day U.S. tariff suspension in July, which could trigger renewed market stress. Nonetheless, prices have risen approximately 1% this week, the first weekly increase in a month, buoyed by export estimates indicating a significant rise in Malaysian shipments, which surged between 11.9% and 18.5% during the first 20 days of April compared to the same timeframe in March, as reported by cargo surveyors. In the United States, President Trump reiterated his preference for a trade agreement with China that avoids exceedingly high tariffs of up to 145%, helping to mitigate broader market concerns, including those in the edible oils sector. Simultaneously, India, the largest importer, has resumed palm oil purchases following a five-month hiatus, prompted by recent price adjustments that have rendered palm oil more cost-effective than soyoil, encouraging refiners to replenish their stocks.