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Palm oil is a vegetable oil obtained from palm oil and is used in a variety of consumer goods, from processed foods to biofuels. Indonesia is a major palm oil producer, with a record 43.5 million tonnes of palm oil produced in 2020/2021. Indonesia and Malaysia are also the world's largest palm oil exporters, with total exports of more than 28.8 million and 17 million tons in 2020/2021, respectively. India imports the most palm oil of any country, with an import value of around $5.5 billion for 2020.

Following gains in the previous two sessions, Malaysian palm oil futures saw no movement, lingering around MYR 4,420 per tonne. Due to data from cargo surveyors showing that Malaysia's palm oil exports decreased by 5.0% to 14.2% from the same time in February, traders evaluated export projections for the March 1–20 period. The Malaysian Palm Oil Board, meanwhile, declared that even though the reference price was increased, the export tax for crude palm oil in April will stay at 10%. The Malaysian Palm Oil Council, on the other hand, predicted that prices will fall between MYR 4,400 and MYR 4,600 in March. Concerns over the effects of growing U.S. tariffs under the Trump administration on international markets, especially palm oil, have caused the contract to drop by around 3.5% so far this week, putting it on track for a second consecutive weekly decrease. Meanwhile, there was also ambiguity about the timing and scope of China's (the largest buyer) current stimulus plan to increase demand.

Worldwide palm oil consumption: 73.87 million tons. Worldwide palm oil production: 75.5 million tons