Palm oil remains weak as demand concerns suppress prices

⑴ Malaysian palm oil futures fell by about 1% to below 4,600 ringgit per ton, extending their sluggish performance. Weak export data added pressure, with shipping surveyors estimating that shipments between May 1 and 20 dropped by 13.9% to 20.5% compared to the previous month. ⑵ Imports by the largest buyer, India, declined by 26% in April from the previous month to a four-month low, reflecting weaker institutional demand and a narrowing price gap with other oils, further deepening demand concerns. However, high crude oil prices provided support, boosting expectations for biodiesel demand and highlighting global supply risks. ⑶ In addition, Jakarta will raise the mandatory biodiesel blending rate from B40 to B50 in July, while Malaysia will increase its blending requirement from B10 to B15 in June.