Palm Oil Prices Surge as Demand from India and China Expected to Rise
Malaysian palm oil futures jumped by approximately 2.5% on Friday (April 25), surpassing MYR 4,100 per ton, rebounding from a sluggish session the day before. The sharp increase was fueled by remarks from the Malaysian Palm Oil Council (MPOC), which indicated that demand from key buyers—China and India—could rise in the coming months.
According to a report by Tradingeconomics, China is expected to ramp up palm oil imports in May and June to replenish stocks ahead of the summer season. India, on the other hand, is likely to take advantage of currently lower prices to rebuild its reserves, further supporting global demand.
For the week, palm oil futures are on track to climb nearly 4%, marking a strong recovery after three consecutive weeks of decline. The rebound is largely attributed to robust export indicators. Cargo surveyors reported that Malaysia’s palm oil exports surged between 11.9% and 18.5% in the first 20 days of April compared to the same period in March.
Further boosting market sentiment, U.S. President Donald Trump voiced support for a trade deal with China that would avoid steep tariffs of up to 145%, easing concerns in global commodity markets.
Despite the bullish momentum, gains were partially capped by expectations of higher output. Increasing plantation activity and cautious sentiment ahead of the expiration of U.S. tariff pauses in July have tempered the rally.
The outlook for the palm oil market remains cautiously optimistic, with traders closely watching upcoming import data and production trends in Southeast Asia.
