China’s strategic move away from Canadian imports is rewriting the palm oil playbook—sparking a rally in Malaysian futures and signalling shifting global trade winds. As inflation pressures mount and US tariff threats rattle markets, investors are eyeing edible oils with renewed interest.
Malaysian palm oil futures continued their upward climb, marking a second consecutive day of gains as China increased its purchases to rebuild reserves. The June contract rose by 18 ringgit, or 0.42%, closing at 4,277 ringgit per metric ton. This price momentum was echoed on the Dalian Commodity Exchange, where soyoil and palm oil rose by 0.28% and 0.38% respectively. While the Chicago Board of Trade registered a minor dip in soyoil of 0.05%, the broader edible oils market demonstrated resilience.
Despite rising prices, Malaysia’s palm oil exports declined more than 8% in March, based on data from Intertek and AmSpec. This underscores the complexities facing exporters even as demand picks up from key markets like China. The broader macroeconomic backdrop remains volatile, with global oil prices edging higher due to geopolitical tensions. US threats of sanctions on Venezuelan oil buyers and tariffs on auto imports have triggered fears of rising inflation and sent tremors through already uneasy stock markets.
China’s decision to shift away from Canadian oils reshapes global supply chains and reinforces palm oil’s role as a strategic commodity. Combined with a strengthening US dollar and heightened trade protectionism, the result is a tense but opportunity-rich landscape for investors navigating the edible oils market.
Dekel Agri-Vision PLC (LON:DKL) aspires to become a leading agro-industrial company in West Africa, one that creates value for shareholders whilst at all times placing the interests of the local communities and environment in which it operates in at the heart of its operations.
