Malaysian palm oil futures traded above MYR 4,600 per tonne, extending their upward trend to a two-week high, supported by a weaker ringgit and firm export demand. Cargo surveyors reported that palm oil shipments for June 1–15 increased by between 9.6% and 23.8% from the same period in May. At the same time, imports by top buyer India are projected to surpass 600,000 tonnes in June, after inching up to 549,356 tonnes in May.
Prices also drew support from expectations of lower output linked to the lingering impact of El Niño. In Indonesia, the world’s largest palm oil producer, the B50 biodiesel mandate is scheduled to take effect on July 1 following successful fuel tests, brightening the outlook for domestic consumption. Futures are on course to end the week more than 3% higher, with sentiment further underpinned by the Malaysian Palm Oil Council’s forecast that prices will remain in a range of MYR 4,400 to MYR 4,650 in July. However, holidays in the Dalian and Chicago markets capped additional gains.
