Malaysian palm oil prices fell to around MYR 4,070 per tonne, reversing gains from the previous two sessions, weighed down by weaker soybean oil on the Chicago Board of Trade and Dalian markets, along with lingering trade uncertainty ahead of the July 9 tariff deadline. Sentiment was further hit after U.S. President Trump said he would begin notifying countries from July 4 and ruled out extending the truce.
Still, futures are on track for a weekly gain of around 1.5%, rebounding from last week’s losses. Support came from stronger exports, with cargo surveyors reporting a 4.3%–4.7% increase in June shipments. Meanwhile, Reuters forecast Malaysia’s palm oil inventories likely fell in June, the first time in four months. On the production side, output is expected to dip short-term as palm trees enter their seasonal rest phase before recovering in Q3. Meantime, demand from top buyer India is expected to remain strong, with June imports hitting an 11-month high amid favorable prices.
