FX.co ★ Palm Oil Rises for Third Session

Malaysian palm oil futures have climbed above MYR 4,300 per tonne, marking a third consecutive trading session of gains. This upward trend correlates with strengthened performances in rival edible oil markets on the Dalian and Chicago Board of Trade (CBoT). The Malaysian Palm Oil Council predicts that prices will hover between MYR 4,100 and MYR 4,300 in the coming month, bolstered by robust soybean oil markets and an increase in festive demand, particularly from India, Malaysia's largest buyer. In Indonesia, the world's leading producer, there was a 4.27% decline in end-May inventory levels from April, dropping to 2.9 million metric tons, according to data from the Indonesia Palm Oil Association. This drop primarily resulted from a surge in exports. Nonetheless, the stronger ringgit has put a lid on further price increases. On the production side, the Malaysian Palm Oil Association noted an 11.2% rise in crude palm oil output from July 1st to 20th, compared to the previous month. Meanwhile, in the United States, President Trump has indicated that upcoming "reciprocal" tariffs will begin at a minimum rate of 15%, setting a higher baseline for new tariffs ahead of the August 1 deadline, and signaling a more assertive stance in trade negotiations.