Malaysian Palm Oil Futures Likely to Rise Tuesday, Tracking Soybean Oil Gains

According to Jin10 Futures, Malaysian crude palm oil futures on the Bursa Malaysia Derivatives Exchange (BMD) are likely to open higher on Tuesday (July 7), following strength in Chicago soybean oil markets. High temperatures and dry conditions in the U.S. Midwest could stress soybean crops, supporting soybean and soybean oil prices. A weakening Malaysian ringgit is also expected to support palm oil prices by reducing purchasing costs for foreign currency-denominated buyers.

A recent survey indicates that end-June palm oil inventory may reach historical highs for the period, as production growth has outpaced demand growth. The Malaysian Palm Oil Board is scheduled to release June supply and demand data this week.