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2026.04.0803:46:20UTC+00Palm Oil Under Pressure Amid Weaker Crude, Demand Concerns

Malaysian palm oil futures fell about 3% to below MYR 4,630 per tonne on Wednesday, marking a third consecutive decline and the lowest level in nearly two weeks. The drop tracked a sharp fall in crude oil prices, which weakened risk sentiment after U.S. President Donald Trump announced a two-week ceasefire in the Iran conflict, reducing palm oil’s attractiveness as a biofuel feedstock. Caution also intensified ahead of key data from the Malaysian Palm Oil Board due later this week, as well as China’s March inflation figures, an important gauge of demand from the world’s largest consumer.

Concerns over demand added further pressure. India, the top buyer, saw palm oil imports fall 19% in March to a three-month low as elevated prices curbed purchases. However, losses were limited by expectations of tighter supply: a Reuters survey pointed to Malaysia’s steepest inventory drawdown in three years. Meanwhile, Indonesia, the world’s largest palm oil producer, reported strong export volumes in February ahead of the planned rollout of its B50 biodiesel mandate in July, and Thailand has reportedly tightened controls on crude palm oil exports.

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