Malaysia Crude Palm Oil Futures Set to Open Higher on Tuesday, Driven by Production Decline and Oil Rally

According to Jin10 Futures, Malaysia's crude palm oil futures on the Bursa Malaysia Derivatives exchange are expected to open higher on Tuesday (June 9), supported by declining May production expectations and gains in international crude oil. Chicago soybean oil futures strength is also contributing to upward pressure.

Climate risks, including potential El Niño conditions in the second half of 2026, may further limit Southeast Asian palm oil production. However, uncertainty surrounding Indonesia's B50 biofuel policy could weigh on prices, as palm oil selling may accelerate before the country's new export system is fully implemented.