FX.co ★ Palm Oil Rises for 3rd Session

Malaysian palm oil prices have stabilized above MYR 4,660 per tonne, recording gains for the third consecutive session and reaching their highest level in nearly three months. This upward trend is fueled by strong performance in the Dalian exchange and a weaker ringgit currency. Additionally, palm oil production is anticipated to decline as palm trees enter a seasonal rest phase before reaching peak output in the third quarter. Meanwhile, exports have shown resilience, with June shipments increasing between 4.3% and 4.7% compared to May, according to data from cargo surveyors. Concurrently, an Indonesian association has cautioned that shipments to the U.S. might decrease due to 32% tariffs on Indonesian products, which could potentially provide Malaysia with a competitive trade advantage. Demand from India, the world's largest palm oil importer, has remained robust, with June imports reaching an 11-month high, driven by competitive pricing. Nonetheless, further price increases were limited by weak economic data from China, where consumer prices saw a marginal rise in June, while producer prices experienced their steepest decline in nearly two years. On a global scale, trade tensions were reignited by fresh tariff threats from U.S. President Trump.