Malaysian palm oil prices firmed, holding above MYR 4,550 per tonne after recent losses, supported by a weaker ringgit and stronger crude oil prices. Demand also improved, with cargo surveyors estimating that palm oil exports for June 1–25 rose by between 10.6% and 11.1% from the same period in May.
In Indonesia, the world’s largest producer and exporter, President Prabowo is scheduled to launch the B50 biodiesel mandate on July 1 as part of efforts to boost energy self-sufficiency. Demand prospects in China, another major consumer, also brightened after both manufacturing and services returned to modest growth in June.
Gains were capped by weaker edible oil prices on the Dalian and Chicago exchanges. Sentiment was further pressured by Indonesia’s decision to cut its July crude palm oil reference price to USD 1,000.90 per tonne from USD 1,029.51 in June. Investors also stayed cautious ahead of monthly industry supply-and-demand data due later this month.
