FX.co ★ Palm Oil Eases on Weaker Demand Signals

Malaysian palm oil futures experienced a slight dip, settling below MYR 4,220 per tonne. This decline counteracts a nearly 2% increase from the previous session, influenced by decreases in palm oil contracts on the Dalian exchange. Concerns about a drop in exports resurfaced as cargo surveyors reported that Malaysian palm oil shipments during the first half of July decreased by 5.3% to 6.2% compared to the same timeframe in June. The market sentiment was further dampened by weather-related risks, highlighted by floods affecting various regions in Malaysia, including significant palm-growing areas. On a global scale, uncertainty was heightened by reports that U.S. President Trump plans to issue a uniform tariff proposal to over 150 countries, irrespective of their trade volume with the U.S. Nonetheless, the extent of losses was curtailed by indications of sustained demand from India, the leading buyer. Indian importers capitalized on recent price drops to bolster their stocks in June.