FX.co ★ Palm Oil Remains Weak

Malaysian palm oil futures fell below MYR 4,450 per tonne, extending the downturn that began in early May and reaching their lowest level in a month. Sentiment was pressured by a stronger ringgit and weakness in rival edible oils on the Dalian and Chicago exchanges. Contracts are down about 2.2% so far this week, weighed by softer demand from key buyer India.

Data from the Mumbai-based Solvent Extractors’ Association of India showed that India’s palm oil imports sank 26% in April from the previous month to a four-month low. Weak institutional demand and a recent price rally, which narrowed palm oil’s discount to competing oils, discouraged refiners from stepping up purchases.

Export indicators for May were mixed: AmSpec Agri estimated shipments were down 10.8%, while Intertek reported an 8.5% increase. Traders are now focused on an upcoming summit in Beijing between U.S. President Trump and Chinese President Xi Jinping, where agricultural trade is expected to remain a key topic.