Malaysian palm oil futures edged up on Thursday, hovering near MYR 4,040 per tonne to mark a second day of gains. Support came from a weaker U.S. dollar and firmer rival edible oil prices in Dalian and Chicago markets, alongside bets of stronger demand ahead of the Lunar New Year and Ramadan in February. In top producer Indonesia, authorities plan to seize 4–5 million hectares of palm oil plantations, on top of 4.1 million hectares taken over last year. Analysts warned the move, coupled with Indonesia’s aggressive biodiesel expansion, could tighten supplies and lift prices. Gains were limited, however, by weaker demand from India, the world’s largest palm oil buyer, with December imports falling to an eight-month low amid soft winter consumption and greater use of competing oils. Meantime, Reuters estimates suggested Malaysia’s inventories hit a near seven-year top in December, while caution persisted over deflation risks ahead of CPI and PPI data due Friday in China, the key consumer.
