06.01.202603:56:03UTC+00Palm Oil Holds Steady on Mixed Signals

Malaysian palm oil futures remained relatively stable on Tuesday, lingering around MYR 4,010 per tonne, following gains in the previous session. The support derived from stronger rival edible oil markets in Dalian and Chicago was largely counterbalanced by a firmer ringgit and indications of waning demand from leading purchaser India. Recent data indicated that India's palm oil imports dropped to an eight-month low in December, primarily due to reduced winter consumption and an increased preference among refiners for alternative oils. Market participants have shifted their focus to the release of upcoming December palm oil statistics and key economic data from China, a major consumer, including the Consumer Price Index (CPI) and Producer Price Index (PPI) figures. Additionally, traders evaluated a Reuters prediction that pointed to Malaysian palm oil inventories reaching their highest level in nearly seven years in December. This comes even as demand is anticipated to rise in anticipation of the Lunar New Year and Ramadan celebrations in February. Geopolitical factors remained a concern, particularly the potential market repercussions of any U.S. military involvement in Venezuela.