FCPO1!Malaysian palm oil futures jumped almost 1.5% on the first trading day of March, hovering around MYR 4,100 per tonne, boosted by a weaker ringgit and firmer edible oil prices on the Dalian and Chicago markets.
A rally in crude oil prices amid mounting Middle East tensions also supported sentiment.
In top supplier Indonesia, authorities raised the crude palm oil export levy to 12.5% of the reference price, up from 10%, to fund its biodiesel mandate, a move expected to tighten supply.
Demand signals were upbeat, with palm oil imports in India, the world’s largest consumer, surging 51% mom in January to a four-month high and boosting hopes for 2026 buying of up to 800,000 tonnes.
However, gains were capped by weak exports, as cargo surveyor Intertek noted Malaysian shipments fell 21.5% in February to 1.15 million tonnes, despite seasonal demand ahead of Eid al-Fitr.
Investors now await the February PMI in key buyer China, with concerns that the Spring Festival slowed economic activities.
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