Shenwan Hongyuan Futures: Malaysia's palm oil production increases, exports decrease, inventory risk intensifies, El Niño may lead to a decline in output supporting prices

Currently, Malaysia’s palm oil April production has significantly increased month-on-month, while exports have sharply decreased, increasing the risk of inventory accumulation. Recently, El Niño has attracted attention, and this year is expected to experience the strongest El Niño in 140 years, along with its impact on global high temperatures. Major palm oil producing countries may face droughts, and palm oil production is expected to decline significantly, supporting palm oil futures prices. Overall, geopolitical uncertainties remain high, and oilseed price fluctuations are expected to continue. Future focus should be on the evolving situation in the Middle East and changes in policies regarding biomass and cooking fuel in countries like Indonesia. (Shenwan Hongyuan Futures)