FX.co ★ Palm Oil Rises Further

Malaysian palm oil prices remained steady around MYR 4,070 per tonne, continuing the upward momentum from the previous session. This rise was bolstered by strength in competing oils on the Dalian Commodity Exchange. The market sentiment was further buoyed by an increase in exports, as reported by cargo surveyors, who noted a rise of 4.3% to 4.7% in June compared to the previous month. On a global level, investor confidence improved following an announcement by U.S. President Donald Trump about a new trade agreement with Vietnam. Meanwhile, Indonesia, the world's leading palm oil producer, appealed to India—the largest global consumer of palm oil—to implement a more predictable import policy to support stable trade amidst changing climate and policy conditions. Additionally, Jakarta increased its crude palm oil reference price for July to USD 877.89 per metric ton, up from USD 856.38 in June, signifying stronger global demand. However, the potential for further price increases was limited due to declining crude oil prices and a marginally stronger ringgit. In China, a significant market for palm oil, services sector growth in June was at its slowest in nine months, affected by ongoing trade uncertainties leading up to the July 9 tariff deadline.