FX.co ★ Palm Oil Under Pressure After Four-Day Rise

Malaysian palm oil prices experienced a significant decline of approximately 3%, settling around MYR 4,000 per tonne, thus ending a four-session streak of gains. The downturn was influenced by declines in competing soyoil markets at the Dalian and Chicago exchanges, as well as the appreciation of the ringgit. In the broader energy sector, oil prices fell to a one-week low following U.S. President Trump's announcement of a ceasefire between Iran and Israel, which reduced geopolitical risk premiums. The contracts approached their lowest levels in a month, partially due to reports suggesting that India's soyoil imports might decrease by 18% from the previous month because of port congestion, indicating a short-term dip in edible oil demand. Concurrently, purchases from major buyer China remained lackluster amid challenging economic conditions. Additionally, the consecutive three-month increase in inventories and production as of May prompted apprehensions about a possible supply surplus. However, indications of robust export activity mitigated further declines, with cargo surveyors estimating that Malaysian palm oil exports rose significantly by 10.9% to 14.3% during the first 20 days of June compared to the previous month.