Palm Oil Trades Below MYR 4,250

Malaysian palm oil futures were below MYR 4,250 per tonne, reversing from a strong session at the start of the week amid a stronger ringgit and expectations of higher production in March.

Traders were also cautious as they anticipated PMIs data in China for March that will be due over the weekend.

A strength in Dalian vegetable oils and a further rise in crude oil prices limited the bearish mood.

Meanwhile, export data continued to indicate strong growth in March.

Cargo surveyors Intertek Testing Services and AmSpec Agri reported shipments of Malaysian palm oil products for March 1-25 likely rose between 13.8% and 21.2% from the same period in February.

In top producer Indonesia, authorities reportedly are considering revising the domestic market obligation policy for edible oil by linking it to production instead of exports.

In recent months, production growth in the country is slowing, meaning the export would be tighter, according to a commodity research company.