Malaysian palm oil futures rose about 1.7% to above MYR 4,500 per tonne, snapping a two-session losing streak, as a weaker ringgit and firmer palm oil prices on the Dalian exchange lifted sentiment. The market also drew support from stronger export demand: cargo surveyors reported that palm oil shipments for June 1–15 increased between 9.6% and 23.8% from the same period in May. At the same time, El Niño is projected to curb Malaysian palm oil yields by 8%–10% this year.
Upside, however, was limited by weakness in rival edible oils on the Chicago markets. Meanwhile, Malaysia has cut its July crude palm oil reference price, but kept it at a level that leaves the export duty unchanged at 10%. In key buyer India, palm oil imports in May inched higher from April’s four-month low yet remained below typical levels.
Analysts expect the rally to lose steam, pointing to the likelihood of softer crude oil prices following the U.S.–Iran peace deal and subdued consumer spending in China, a major palm oil consumer. Markets will be closed on Wednesday for a holiday.
