FX.co ★ Palm Oil Slips Yet Heads for First Monthly Rise in Four

Malaysian palm oil prices experienced a significant drop, falling below MYR 3,980 per tonne. This decline effectively reversed the strong gains recorded in the prior session, primarily due to weakened sentiments influenced by rival Dalian oils and crude oil prices. A robust ringgit further pressured prices since it made palm oil more costly for international buyers. Concurrently, Malaysia has revised its July crude palm oil reference price downward, subsequently reducing the export duty to 8.5% from the previous month's 9.5%, according to the Malaysian Palm Oil Board. Despite these challenges, the contracts remain on course for their first monthly increase in four months, showing an approximate rise of 2.2%, bolstered by promising signs of strong export demand. Cargo surveyors have estimated that shipments of Malaysian palm oil products saw an increase of between 6.6% and 6.8% month-over-month from June 1 to 25. On an international scale, trade tensions have eased as China committed to simplifying export approvals for controlled commodities, and the United States plans to relax some restrictions. Additionally, President Trump hinted at the development of up to 10 new trade agreements, including one with India.