Palm Oil Market Subdued

Malaysian palm oil futures hovered near MYR?4,530 per tonne, steady after the prior session’s sharp losses. Support from a softer ringgit and firmer Chicago soyoil was offset by weakness in rival edible oils on China’s Dalian exchange. Traders stayed cautious ahead of official industry data, with a Reuters survey pointing to another inventory build in May as sluggish exports outweighed lower output. Demand from top buyer India recovered modestly from April’s four-month low but remained below historical norms. Meanwhile, Indonesia, the world’s largest palm oil supplier, introduced new technical rules tightening oversight of strategic commodity exports, including palm oil, raising concerns among exporters and potentially diverting some demand toward Malaysia. Still, export prospects stayed weak, with cargo surveyors estimating May shipments fell 8.8%–15.5% from April, underscoring persistent softness in external demand.

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