FX.co ★ Palm Oil Begins July with Losses

Malaysian palm oil prices remained below MYR 3,960 per tonne, marking a decline for the second consecutive session due to weaker performance in competing oils on the Dalian and Chicago exchanges. Additionally, the strengthening of the ringgit, reaching its highest point since October 2024, contributed to the negative sentiment by making palm oil more costly for international purchasers. In the broader energy sector, crude oil saw continued declines amid worries that increased U.S. tariffs might hinder global economic expansion. Despite this, predictions of rising exports prevented further decreases in palm oil prices. Cargo surveyors projected Malaysian palm oil shipments to have increased by 4.3% to 4.7% month-on-month in June. In China, a significant consumer, manufacturing activity experienced growth in June, driven by Beijing's ongoing economic support measures aimed at mitigating the impact of new U.S. trade tariffs. Simultaneously, in Indonesia, the leading producer, authorities increased the reference price for crude palm oil in July to USD 877.89 per metric ton, up from USD 856.38 in June, indicating stronger global demand.