FX.co ★ Palm Oil Sees Muted Start to the Week

Malaysian palm oil prices remained relatively stable, hovering around MYR 4,060 per tonne, after experiencing declines in the previous trading session. Market participants assessed a recent Reuters forecast indicating that Malaysia's palm oil inventories likely decreased in June for the first time in four months. This decline is attributed to an unexpected drop in production, despite robust export activity. Meanwhile, investors kept a close eye on developments in U.S. trade policy after President Trump confirmed that "reciprocal" tariffs, initially announced in April, will be implemented on August 1 for countries without a trade agreement with the U.S. Furthermore, countries within the BRICS alliance will incur an additional 10% tariff. In China, a major consumer, forthcoming June data for the Consumer Price Index (CPI) and Producer Price Index (PPI) is anticipated, with expectations that consumer prices will stabilize following a four-month period of decline, while producer prices are expected to decrease. Concurrently, demand from India, the top buyer, is projected to remain robust. Indian imports in June surged to their highest level since July 2024, driven by competitive pricing.