Palm Oil Under Pressure Ahead of Monthly Data

Malaysian palm oil futures plunged by nearly 2% to below MYR 4,500 per tonne, reversing prior gains amid a firmer ringgit and weaker edible oils on the Dalian and Chicago markets. A sharp drop in crude oil prices also weighed on sentiment, along with caution ahead of the Malaysian Palm Oil Board’s monthly report due later this week, with expectations pointing to another inventory build in May, according to Reuters. Meanwhile, cargo surveyors noted shipments fell 8.8%–15.5% in May from April. Demand from India, the world’s largest buyer, recovered modestly from April’s four-month low but stayed below historical norms. Still, losses were cushioned by upbeat Chinese trade data, with exports hitting a record and imports accelerating in May, signaling resilient demand in a key market. Additional support came from top grower Indonesia, where new technical rules tightened oversight of strategic commodity exports, including palm oil, potentially shifting some demand toward Malaysian supplies.