Bursa Malaysia Derivatives (BMD) crude palm oil futures likely to open lower on
Monday, following a broad market pullback. Brent crude extended Friday losses in
electronic trading after US President Trump, following two weeks of airstrikes
on Iran, announced a pause in strikes, lifting hopes of a diplomatic easing in
the Middle East. Weak Malaysian palm oil exports are weighing: a shipping survey
showed July 1-20 exports ranged from a 0.9% decline to a 4.1% month-on-month
increase across categories. Offsetting support stems from a strengthening El
Nifio threatening Southeast Asian output, Indonesia’s mandatory B50 biodiesel
blending tightening exportable supply, and expectations of higher Indian edible
oil imports from July to October.
