Palm oil futures declined amid growing concerns over increasing supply in Malaysia, the world’s second-largest producer. March saw inventories climb for the first time in six months, with production jumping 17% month-on-month, according to the Malaysian Palm Oil Board.
Market sentiment has also been weighed down by softer soybean oil and crude oil prices. However, the decline in palm oil was cushioned by improving export activity — shipments from Malaysia rose 29% during April 1–10, driven by stronger demand from China and the Middle East.
Analysts say palm oil’s current price discount to soybean oil has made it more attractive, with expectations of renewed buying from key markets like China and India.
