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MarketsPalm Oil

Palm Oil Holds Above MYR 4,550

Malaysian palm oil futures hovered above MYR 4,550 per tonne, extending modest gains as stronger edible oil prices on Dalian and Chicago exchanges supported sentiment. Higher crude oil prices also improved palm’s appeal as a biodiesel feedstock. Firmer exports also added support, with cargo surveyors noting shipments rose between 10.6%–11.1% in the first 25 days of June. Supply fundamentals stayed constructive as weather risks clouded production prospects. Meantime, top producer Indonesia will roll out its B50 biodiesel mandate from July 1, with a three-month transition for retailers to clear stocks, reinforcing expectations of stronger domestic consumption. In India, imports are projected to exceed 600,000 tonnes in June, up from 549,356 tonnes in May, underscoring robust demand from the world’s largest buyer. Gains, however, were capped by a firmer ringgit and cautious positioning ahead of China’s PMI data later this week, which may offer fresh clues on demand from the key consumer.

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