FX.co ★ Palm Oil Hovers Below MYR 3,910

Malaysian palm oil prices fell below MYR 3,910 per tonne, reversing the modest gains of the past two sessions. This fluctuation came as traders assessed crucial monthly data from the Malaysian Palm Oil Board (MPOB). As of the end of May, palm oil inventories climbed 6.65% from April, reaching 1.99 million metric tons—marking the third consecutive monthly increase and the highest level recorded since September 2024. Crude palm oil production also experienced a rise for the third month in a row, increasing by 5.05% to 1.77 million tons. Since early May, prices have lingered near seven-month lows due to anticipation of continued production growth driven by favorable weather and replanting efforts, projected to extend through September. Concerns about escalating inventories remained prevalent, particularly amidst sluggish demand from China, a major buyer. However, declines were tempered by strong export performance; MPOB data highlighted a 25.6% surge in May shipments to 1.39 million tons, the highest since November. Meanwhile, the easing of trade tensions between China and the U.S. and India's recent reduction in crude import duties have buoyed hopes for increased demand.