FX.co ★ Palm Oil Extends Rally to 7-Week High

Malaysian palm oil prices have experienced a notable increase of over 3.5%, reaching more than MYR 4,050 per tonne. This marks consecutive session gains and the highest prices seen in seven weeks. The price rally is attributed to strengthened performance of competing soyoil on the Chicago and Dalian exchanges, as well as an uptick in crude oil prices amid ongoing geopolitical tensions. On the export side, shipments saw a 26.3% rise from the same stretch in May, totaling 662,580 metric tons between June 1 and June 15, according to Intertek Testing Services. An industry expert has observed that exports could reach their peak around August. Demand in major market India saw an 84% leap in palm oil imports in May compared to April, hitting a six-month high due to low stock levels and significant price discounts relative to soyoil and sunflower oil. Nevertheless, this uptrend is tempered by worries about increasing inventory levels; stocks at the end of May increased by 6.7% to 1.99 million tonnes, the highest since September 2024 and marking the third monthly rise. Concurrently, production is anticipated to continue its upward trend through September, aided by favorable weather conditions and ongoing replanting initiatives.