FX.co ★ Palm Oil Snaps Two-Session of Losses

Malaysian palm oil futures have stabilized at approximately MYR 4,260 per tonne, marking an increase for the first time in three sessions. This movement is buoyed by a weaker ringgit and positive developments in Dalian soyoil. Additionally, robust demand from India, especially as the Diwali festival approaches in mid-October, continues to support prices. In June, India's palm oil imports surged to an 11-month peak, attributed to low domestic stock levels and more competitive pricing when compared to soyoil and sunflower oil. Nonetheless, further gains were limited by indications of weak exports, with reports from cargo surveyors indicating Malaysian palm oil shipments dropped between 9.2% and 15.2% for the period of July 1–25 compared to June. On the supply side, there's a projected increase in production, with the Malaysian Palm Oil Board estimating an increase to 19.5 million tonnes in 2025, up from 19.3 million tonnes in 2024, due to improved labor conditions. In trade policy, U.S. Commerce Secretary Lutnick indicated that the Trump administration is "likely" to extend a 90-day pause on tariffs with China, potentially setting the stage for a meeting between Trump and Xi Jinping later this year.