Malaysian palm oil futures traded above MYR 4,550 per tonne, rebounding from recent losses as a weaker ringgit boosted export competitiveness and firmer Chicago soyoil improved sentiment across the broader vegetable oil market. A sharp rise in crude oil prices, driven by diminishing hopes for a near-term resolution to Middle East tensions, further supported prices via stronger biofuel demand.
In Indonesia, the world’s largest producer, authorities introduced a technical regulation that tightens oversight of key commodity exports, including palm oil—a step that could divert some demand toward Malaysia. However, upside momentum was restrained by weakness in rival vegetable oils on China’s Dalian exchange and expectations of comfortable supply.
A Reuters survey indicated that Malaysia’s palm oil inventories likely increased again in May, as sluggish exports more than offset lower production. Cargo surveyor data showed shipments declining by 8.8% to 15.5% from April, highlighting subdued demand. Purchases by top buyer India recovered slightly from April’s four-month low but stayed below typical levels, limiting further price gains.
