FX.co ★ Palm Oil Rises Further to Begin the Week

Malaysian palm oil prices have maintained levels above MYR 4,200 per tonne, marking a continuation of gains for the second day, spurred by a slight weakening of the ringgit and firmer prices of competing edible oils on the Dalian market. Prices are nearing a three-month peak, bolstered by indications of increased exports. Data from cargo surveyors suggests that Malaysian palm oil product shipments between July 1 and 10 have increased by 5.3% to 12% compared to the previous month. This positive sentiment is further supported by encouraging trade figures from China, a major purchaser, where export growth has accelerated due to temporary tariff reductions, and imports have risen for the first time this year, indicating the effects of Beijing's initiatives to stimulate domestic demand. Nevertheless, upward momentum is being limited by renewed trade tensions, following U.S. President Trump's recent announcement of a broader range of tariff hikes targeting over 20 countries. Additionally, the latest figures from the industry regulator indicate that palm oil inventories grew by 2.41% in June, reaching an 18-month high of 2.03 million tonnes.