2025.04.0406:57:36UTC+00Palm Oil Set to Close Week on Sour Note

Malaysian palm oil futures experienced a decline of approximately 2.5%, positioning them below MYR 4,400 per tonne. This downturn continues from the previous session, fueled by concerns that President Trump’s reciprocal tariffs could adversely impact macroeconomic conditions, subsequently affecting palm oil demand. Prices are projected to decrease roughly 1.0% on a weekly basis, undoing earlier gains, as workers resume activity in Malaysian plantations following the Eid-ul-Fitr holiday. Meanwhile, a Reuters analysis suggests that Malaysian palm oil inventories probably increased in March for the first time in half a year, with production climbing by 10.3% to reach 1.31 million tons. The Malaysian Palm Oil Board is scheduled to publish its monthly figures next week. In the energy sector, crude oil is heading for its most challenging week in recent months, triggered by new U.S. tariffs. However, potential further losses were mitigated by reports from cargo surveyors indicating that Malaysian palm oil exports rose between 0.4% and 3.92% in March. In the United States, an alliance of oil and biofuel sectors has proposed increasing biomass diesel mandates to between 5.5 billion and 5.75 billion gallons, up from the existing mandate of 3.35 billion gallons.