Palm Oil Prices Continue to Decline Amid Market Uncertainty
Palm oil prices are experiencing further declines, reflecting the overall drop in competing vegetable oil prices and uncertainty surrounding U.S. trade measures. According to the Bursa Malaysia derivatives exchange, the benchmark palm oil futures contract for May delivery fell by 105 ringgit (2.34%), reaching 4,379 ringgit ($980.74) per metric ton by mid-trading session.
Additional pressure on the market came from China’s anticipated countermeasures in response to U.S. tariffs on agricultural exports. These developments led to a 1.15% decline in soybean oil futures in Dalian, while palm oil contracts in China lost 2.8% in value.
Despite the ongoing price drop, analysts predict that Malaysia’s palm oil stockpiles may fall to their lowest level in nearly three years by February. At the same time, India’s palm oil imports surged by 36% in February after hitting their lowest level since March 2011.
Technical analyst Reuters Wang Tao highlighted the potential for further declines: "Palm oil may fall to 4,435 ringgit per metric ton," indicating continued market instability.
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