Palm Oil Heads toward Fourth Weekly Gain

Malaysian palm oil futures edged higher to above MYR 4,550 per tonne, extending recent gains. The market was also on track for a fourth straight weekly advance, up around 0.3% so far this week. Sentiment remained supported by stronger export demand, with cargo surveyors estimating that Malaysian palm oil shipments during June 1–10 rose between 3.5% and 4.9% from the same period a month earlier. Traders also tracked weather risks after Kuala Lumpur warned that El Niño could cut yields by 8% to 10% this year. However, upside was capped by a stronger ringgit and weaker rival oils in Dalian and Chicago markets. Meanwhile, crude oil continued to slide, as Middle East tensions eased, reducing support for vegetable oils. On the demand side, imports by top buyer India grew slightly in May from April’s four-month low but stayed below normal levels. Separately, industry data showed Malaysia’s inventories increased for a second month in May, underscoring ample supply.

Malaysian palm oil futures rose for a second straight session, hovering around MYR 4,550 per tonne, supported by a weaker ringgit and stronger edible oil prices on the Dalian and Chicago exchanges. Sentiment was further lifted by rising exports, with cargo surveyors noting that Malaysian palm oil shipments during June 1–10 rose between 3.5% and 4.9% from the prior month. Additional support came from the broader energy market, where oil prices surged amid heightened concerns over Middle East supply disruptions, boosting the outlook for biodiesel demand. However, upside was capped as industry data showed Malaysia’s stocks rose for a second month in May. Meanwhile, demand from top buyer India rose slightly in May from April’s four-month low, remaining below typical levels. In Indonesia, the world’s largest producer, the government launched new technical rules for key commodity exports, including palm oil, unsettling exporters and injecting fresh uncertainty into near-term trade flows.

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.