Malaysian palm oil futures jumped over 1% to above MYR 4,300 per tonne, extending solid gains from the prior session, boosted by strength in rival edible oils on the Dalian and CBoT exchanges. Meanwhile, the Malaysian Palm Oil Council expects prices to trade between MYR 4,100 and MYR 4,300 over the next month, citing robust soybean oil markets and rising festive demand from top buyer India.
This bullish momentum is likely to persist into Q3, driven by restocking ahead of India’s Diwali festival in mid-October, with imports likely reaching around 2.9 million tonnes during the period. Market sentiment was also lifted by U.S. President Trump’s announcement of a trade deal with Japan, which includes a 15% tariff on Japanese exports, boosting optimism across global markets. However, a stronger ringgit capped further gains. On the export front, weakness persisted, with cargo surveyors estimating a 3.5%–7.3% decline in palm oil shipments during the first 20 days of July compared to June.
