Malaysian palm oil prices slipped below MYR 4,100 per tonne, snapping a two-day rally as traders booked profits after prices hit a seven-week peak in the previous session. A decline in rival soyoil prices on the Chicago exchange also pressured sentiment, alongside mounting geopolitical concerns in the Middle East and expectations of rising inventories in the coming months. Meanwhile, palm oil production is projected to increase through September after growing for the third month running in May, supported by favorable weather and ongoing replanting efforts.
However, downside pressure was partially offset by signs of strong export demand. Data from cargo surveyors showed Malaysian palm oil exports rose between 17.8% and 26.3% during the first 15 days of June compared to the previous month. In India, the world’s top palm oil buyer, imports jumped 84% in May from April to a six-month high, driven by low stock levels and steeper discounts compared to soyoil and sunflower oil.
