Palm oil futures likely to rise for the third consecutive week, but inventory buildup expectations pressure prices
- Malaysian palm oil futures fell for the second consecutive trading day, hovering below 4,600 ringgit per ton.
- The expectation of rising inventories is creating additional pressure, as shipping survey agencies estimate exports may fall 8.8% to 15.5% compared to April, highlighting weak demand.
- Purchases by India, the world’s largest palm oil importer, have slightly rebounded from the four-month low seen in April, but remain below normal levels.
- Nevertheless, futures prices are still on track for a third consecutive weekly gain, up 0.7% so far this week, supported by the weakening ringgit which boosts export competitiveness. Crude oil prices are also set for substantial weekly gains due to stalled negotiations between Washington and Tehran, which has enhanced palm oil’s appeal as a biodiesel feedstock.
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