FX.co ★ Palm Oil Rises for 4th Session

Malaysian palm oil prices have remained steady around MYR 4,190 per tonne, marking the fourth consecutive session of gains and maintaining a level not seen in three months. The positive sentiment in the market has been bolstered by an increase in exports, as shipments in June rose by 4.3% to 4.7% compared to May, as reported by cargo surveyors. Additionally, a Reuters survey has suggested that palm oil inventories likely experienced a decline in June for the first time in four months, driven by an unexpected drop in production alongside steady export levels. In the current week, futures have sustained upward momentum for the second week in a row, increasing approximately 2.5%, fueled by robust demand from India. This demand surge comes as June saw an 11-month peak in imports spurred by favorable pricing. Nonetheless, gains are being tempered by caution concerning the upcoming release of China’s June trade data, expected over the weekend, as apprehensions grow about potential tariff threats. Concurrently, reports indicate that U.S. President Trump has expanded his list of countries that could face significant tariffs to a total of 21, warning of the possibility of escalating trade tensions unless new agreements are secured.