FX.co ★ Palm Oil Rallies to Near 3-Month High

On Tuesday, Malaysian palm oil prices increased by approximately 2%, surpassing MYR 4,150 per tonne and reaching their highest level in nearly three months. This marks the second consecutive session of price increases. The price uptick was fueled by a weakened ringgit and strong performances in Chicago soyoil and Dalian palm oil futures. On the supply front, production is anticipated to temporarily decline as oil palm trees enter their seasonal rest period before the peak output expected in the third quarter. Export dynamics also showed improvement; Malaysian palm oil product shipments in June rose between 4.3% to 4.7% compared to May, based on cargo surveyor data. Demand from India, the world's largest palm oil importer, remained strong, with imports reaching an 11-month high in June, driven by competitive pricing. Nevertheless, further price increases were limited due to renewed concerns over global trade tensions. U.S. President Trump began informing trade partners about substantial tariff increases intended to take effect on August 1, after a previous delay from the initial schedule in April.