Malaysian palm oil: climbed above the MYR 6,000-a-tonne level, a level not seen in two weeks, as investors assessed signs of more robust exports against a growing demand backdrop.
Malaysia’s March palm oil exports were up 14.1% from a month earlier at 1.265 million tonnes, beating analysts’ estimates as shipments to China and India picked up.
On top of that, the shortage of sunflower and rapeseed oils, in which conflicting countries Russia and Ukraine account for nearly 75% of the global exports, will make the European Union look for Malaysia and Indonesia to replace supplies.
Still, the Malaysian Palm Oil Council forecast a slight rise in 2022 global output, with Malaysia’s production seen at 18.9 million tonnes and Indonesia’s at 47.1 million tonnes. Meanwhile, the two Southeast Asian countries, which account for roughly 85% of the world’s palm oil production, agreed to control the global prices and not compete.