FX.co ★ Palm Oil Rises Further

Malaysian palm oil prices experienced an upswing of over 1%, reaching approximately MYR 4,120 per tonne. This marks the second consecutive session of gains, fueled by a depreciating ringgit alongside robust performances in both Chicago soyoil and Dalian palm oil futures markets. On the supply front, production is anticipated to reduce momentarily as oil palm trees enter their seasonal rest phase before the expected peak output in the third quarter. Meanwhile, export activity showed positive signs, with data from cargo surveyors indicating that shipments of Malaysian palm oil products in June increased by 4.3% to 4.7% compared to May. The outlook for demand remains strong, notably from India—the globe's largest importer of palm oil—where June imports reached an 11-month peak, supported by advantageous pricing structures. Nevertheless, any potential for further price increases was tempered by resurfacing apprehensions about global trade tensions. This is amid U.S. President Trump's notifications to trade partners about significantly higher tariffs taking effect on August 1, following a postponed implementation of duties originally scheduled for April.