Malaysian palm oil futures sank to MYR 3,680 in the latter part of March, the lowest since October, pressured by persistent doubts over demand, sharp pullbacks in rival vegetable oils, and a strong Malaysian ringgit. Rapeseed and sunflower oil prices declined after Russia and Ukraine extended their deal to secure grain trade through the Black Sea, pressuring other vegetable oils.
Also, crude oil prices sank amid turmoil in the global financial sector and an unexpected build in US inventories, denting demand for biofuel feedstock. Meanwhile, India’s palm oil imports in February dropped 30% from the previous month to their lowest in eight months, as an increase in stocks due to excessive imports during November-January underpinned weak demand in recent weeks.
