FX.co ★ Palm Oil Rises Past MYR 4,300

Malaysian palm oil futures have surged by over 1%, surpassing MYR 4,300 per tonne, following a strong performance in the previous session. This rise is attributed to the strength observed in rival edible oils traded on the Dalian and CBoT exchanges. The Malaysian Palm Oil Council forecasts that prices will fluctuate between MYR 4,100 and MYR 4,300 over the next month, supported by a robust soybean oil market and increased festive demand from India, a major importer. The bullish trend is expected to carry into the third quarter, as restocking for the Diwali festival in mid-October is anticipated to push imports to approximately 2.9 million tonnes during this period. Additionally, market sentiment has been buoyed by an announcement from U.S. President Trump regarding a trade agreement with Japan, which involves a 15% tariff on Japanese exports, fueling optimism across global markets. Despite these positive developments, a stronger ringgit limited further gains. On the export sector front, challenges persisted, with cargo surveyors estimating a decline of 3.5% to 7.3% in palm oil shipments during the first 20 days of July compared to the previous month.