FX.co ★ Palm Oil Set to Finish Week on Upbeat Note

Malaysian palm oil prices hovered around MYR 4,180 per tonne, experiencing a recovery following a minor decline in the previous session. This upward movement was bolstered by a weaker ringgit and positive trends in competing edible oil markets such as the Dalian and CBOT. Meanwhile, data from cargo surveyors indicated an increase in palm oil product exports between July 1 and 10, with estimated growth ranging from 5.3% to 12% compared to the previous month. The current week marks the second consecutive weekly gain for the contract, with prices rising nearly 3% thus far, driven by robust demand from India—the largest importer—following June's import surge to an 11-month high, spurred by attractive prices. Nonetheless, the upside was limited by industry regulator data revealing that Malaysia's palm oil inventories climbed 2.41% to an 18-month peak of 2.03 million tons by the end of June. Additionally, global trade uncertainties intensified as Trump reiterated tariff threats against Europe and Canada. Investors also adopted a cautious stance as they awaited crucial upcoming Chinese economic data, including June's trade statistics, industrial activity, and Q2 GDP figures.