FX.co ★ Palm Oil Eases from Near 3-Week High

Malaysian palm oil futures slipped, remaining below MYR 4,700 per tonne after recently hitting a two-week high, as traders booked profits and crude oil prices softened amid mixed signals on U.S.–Iran developments. Malaysia also reduced its July crude palm oil reference price but left the export duty unchanged at 10%. Downside pressure was partly offset by a weaker ringgit and gains in rival edible oils on the Dalian and Chicago exchanges. Export momentum remained strong, with cargo surveyor data showing shipments for June 1–20 rising between 19.1% and 25% from the same period in May. At the same time, lingering effects of El Niño continued to fuel expectations of tighter supply. In Indonesia, the world’s largest producer, the B50 biodiesel mandate is set to be implemented on July 1 following successful fuel tests, bolstering the outlook for domestic demand. Meanwhile, India’s palm oil imports are projected to exceed 600,000 tonnes in June, up from 549,356 tonnes in May, highlighting persistent appetite from the world’s biggest buyer.