Palm Oil Rises Further

Malaysian palm oil prices hovered around MYR 4,070 per tonne, extending gains from the previous session, supported by strength in rival Dalian oils. Sentiment was also lifted by higher exports, with cargo surveyors reporting a 4.3% to 4.7% increase in June from the prior month. Globally, risk appetite improved after President Donald Trump announced a new trade agreement with Vietnam. Meanwhile, top producer Indonesia urged India—the world’s largest palm oil consumer—to adopt a more predictable import policy to ensure stable trade amid climate and policy shifts. Separately, Jakarta raised its crude palm oil reference price for July to USD 877.89 per metric ton from USD 856.38 in June, reflecting stronger global demand. However, further gains were capped by weaker crude oil prices and a slightly firmer ringgit. In China, a key buyer, services activity in June grew at its slowest pace in nine months, weighed down by ongoing trade uncertainty ahead of the July 9 tariff deadline.