Malaysian palm oil futures hovered above MYR 4,650 per tonne, attempting to rebound from earlier losses, supported by a weaker ringgit and firmer soyoil prices on the Dalian and Chicago exchanges. Prices also drew strength from robust export demand, with cargo surveyors reporting that shipments for June 1–20 were up between 19.1% and 25% from the same period in May. Supply concerns remained in focus, as lingering effects of El Niño continued to signal tighter output.
In Indonesia, the world’s largest palm oil producer, the B50 biodiesel mandate is scheduled to take effect on July 1, reinforcing expectations of stronger domestic consumption. At the same time, India’s palm oil imports are forecast to exceed 600,000 tonnes in June, up from 549,356 tonnes in May, underscoring resilient demand from the world’s biggest buyer.
Upside momentum, however, was limited by weaker crude oil prices, as easing worries about potential disruptions in the Strait of Hormuz pressured the broader energy complex. Separately, Malaysia lowered its July crude palm oil reference price while maintaining its export duty at 10%.
