FX.co ★ Palm Oil Recoups Losses

Malaysian palm oil futures increased by over 1.5%, rising above MYR 4,200, effectively recovering from a notable 2% decline in the previous session. This recovery was bolstered by a weakening ringgit and advances in competing Chicago soyoil. A slight rise in crude oil prices, following recent declines, further improved market sentiment, buoyed by persistent demand spurred by increased summer travel activity. In primary consumer India, June saw palm oil imports reach an 11-month peak as buyers capitalized on recently lower prices to replenish inventories. Nonetheless, further advancement was tempered by subdued export forecasts. Cargo surveyors reported that Malaysian palm oil exports during the first half of July decreased between 5.3% and 6.2% compared to the same period in June. Concurrently, industry data indicated that end-June inventories climbed by 2.41% to 2.03 million tonnes, marking the highest level in 18 months. Simultaneously, the market outlook remained obscured by uncertainties regarding potential U.S. tariffs and ongoing weather-related challenges.