Malaysian palm oil prices rose slightly, hovering near MYR 4,000 per tonne after a sharp 3.5% drop in the previous session. Traders engaged in bargain hunting as prices touched a six-week low. Sentiment was also supported by stronger Chicago soyoil and firmer crude oil prices, as investors assessed the stability of the truce between Iran and Israel. Signs of strong exports further lifted risk appetite, with cargo surveyors estimating Malaysian palm oil shipments rose 10.9% to 14.3% in the first 20 days of June from the prior month.
In the U.S., Washington reportedly proposed allowing refiners to blend a record volume of biofuels into gasoline and diesel next year. However, upside was capped by weaker near-term edible oil demand from top buyer India, especially amid signs that the country’s soyoil imports could fall 18% due to port congestion. Meanwhile, palm oil inventories and production rose for a third consecutive month in May, raising concerns over a potential supply glut.
