Malaysian palm oil futures inched above MYR 4,550 per tonne, extending their recent rally and putting the market on course for a fourth consecutive weekly gain, with prices up about 0.3% so far this week. Supportive sentiment has been driven largely by stronger export demand, as cargo surveyor data indicated that Malaysian palm oil shipments for June 1–10 rose between 3.5% and 4.9% compared with the same period a month earlier.
Traders also monitored weather-related risks after Kuala Lumpur warned that El Niño could trim yields by 8% to 10% this year. Even so, further upside has been constrained by a stronger ringgit and weaker performances in rival vegetable oil markets in Dalian and Chicago. At the same time, crude oil prices continued to decline as tensions in the Middle East eased, reducing a key source of support for vegetable oils.
On the demand side, imports by top buyer India edged up in May from April’s four-month low but remained below typical levels. Meanwhile, industry data showed that Malaysia’s palm oil inventories rose for a second straight month in May, highlighting the presence of ample supply.
