FX.co ★ Palm Oil Rebounds Above MYR 4,000

Malaysian palm oil prices experienced an increase of approximately 1.5%, rising above MYR 4,000 per tonne, after recovering from two consecutive declines. This rebound was supported by strength in the Dalian and Chicago Board of Trade markets, alongside a dip in the ringgit from its eight-month peak, which enhanced export competitiveness. On the trade front, cargo surveyor data indicated that Malaysian palm oil shipments in June increased by 4.3% to 4.7% compared to the previous month. Market sentiment received an additional boost from an unexpected rise in manufacturing activity in China, the largest purchaser, suggesting ongoing efforts by Beijing to revitalize its economy amidst continuous trade challenges. In Indonesia, the leading producer, exports of crude and refined palm oil surged 53% on a year-on-year basis in May, as per official data. Additionally, Jakarta adjusted the crude palm oil reference price upward for July to USD 877.89 per metric ton, up from USD 856.38 in June, indicating robust global demand. Nonetheless, the potential for further gains was tempered by investor caution in anticipation of the U.S. President Trump's July 9 tariff deadline.