Palm Oil Rallies to Near 3-Month High

Malaysian palm oil prices jumped around 2% to above MYR 4,150 per tonne on Tuesday, rising for the second straight session and hitting their highest level in nearly three months. A weaker ringgit and strength in Chicago soyoil and Dalian palm oil futures buoyed sentiment. On the supply side, production is expected to ease temporarily as oil palm trees enter their seasonal rest phase ahead of peak output in the third quarter. Export performance also improved, with shipments of Malaysian palm oil products in June rising by 4.3% to 4.7% from May, according to cargo surveyor data. Demand from India—the world’s top palm oil importer—remained robust, with June imports climbing to an 11-month high on the back of competitive pricing. However, further gains were capped by renewed concerns over global trade tensions, as U.S. President Trump began notifying trade partners of steep tariff hikes set to take effect on August 1, following a temporary delay of duties initially scheduled for April.