FX.co ★ Palm Oil Strengthens on Rising Exports, Crude Upswing

Malaysian palm oil futures traded above MYR 4,550 per tonne, rebounding from the previous session’s lull as a weaker ringgit and strength in the Dalian and Chicago edible oil markets provided support. Sentiment was further lifted by export data, with cargo surveyors estimating that palm oil shipments for July 1–5 rose between 10.6% and 11.1% from the same period in June. A rally in crude oil prices added to the upside, after U.S. airstrikes on Iran and renewed sanctions on Iranian oil exports enhanced palm oil’s attractiveness as a biodiesel feedstock.

Upside momentum, however, was tempered by a drop in palm oil imports by top buyer India, which fell to a 14‑month low in June amid sluggish demand and reduced price discounts relative to rival vegetable oils. Meanwhile, Reuters projected that Malaysian palm oil inventories likely climbed to a record high for June, as production outpaced consumption. Traders also stayed cautious ahead of the Malaysian Palm Oil Board’s monthly report due later this week. In China, another key consumer, upcoming June CPI and PPI data will be closely monitored for fresh indications of demand trends.