FX.co ★ Palm Oil Hits Over Two-Week High

Malaysian palm oil futures extended their recent advance, trading above MYR 4,650 and reaching their highest level in more than two weeks. Prices were buoyed by strength in rival edible oils on the Dalian and Chicago exchanges, as well as a weaker ringgit that enhanced the export competitiveness of Malaysian palm oil. Robust export demand also lent support, with cargo surveyor Intertek Testing Services reporting that shipments of Malaysian palm oil products rose 19.1% during June 1–20 compared with the same period in May. Supply concerns further underpinned the market, as the lingering impact of El Niño continued to drive expectations of lower production. On the demand side, imports by top buyer India are projected to exceed 600,000 tonnes in June, after climbing to 549,356 tonnes in May, underscoring solid consumption. Nonetheless, upside momentum was limited by a sharp decline in crude oil prices following reports that the U.S. and Iran had made progress toward a broader agreement within 60 days, including steps aimed at ending hostilities in Lebanon.