FX.co ★ Palm Oil Trades Lower to Start the Week

Malaysian palm oil prices experienced a marginal decline, stabilizing around MYR 4,100 per tonne, following upward trends over the past three sessions. This dip was influenced by a downturn in competing Dalian vegetable oils and heightened concerns after India, the largest global importer, canceled approximately 65,000 metric tons of crude palm oil shipments initially planned for delivery from July to September. These cancellations were prompted by elevated prices and diminishing import margins. Additionally, demand forecasts in China have remained subdued due to ongoing economic sluggishness. However, the downward pressure was mitigated by a weakening ringgit, enhancing the competitiveness of Malaysian exports, and a spike in crude oil prices due to U.S. military actions against Iranian targets, which have heightened regional tensions. Despite these challenges, some optimism remained, as data from cargo surveyors indicated that Malaysian palm oil exports increased by 10.9% to 14.3% in the first 20 days of June compared to the corresponding period in the previous month, reflecting signs of ongoing demand resilience.