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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 a muted session the previous day, Malaysian palm oil futures rose almost 2.5% to surpass MYR 4,100 per tonne, bolstered by statements from the Malaysian Palm Oil Council (MPOC) suggesting that demand from key buyers China and India may increase in the upcoming months. India might use the current prices to rebuild stockpiles, while China is anticipated to boost imports in May and June to restock inventories before summer. On indications of robust exports, futures are expected to rise by almost 4% this week, ending a three-week losing trend. Malaysian palm oil shipments increased between 11.9% and 18.5% in the first 20 days of April compared to the same time in March, according to cargo surveyors. Adding to positive sentiment, U.S. President Trump voiced support for a trade deal with China that avoids tariffs near 145%, easing global market jitters. Still, gains were limited by expectations of higher output as plantation activity picks up and caution ahead of the July expiry of the U.S. tariff pause.

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