Palm oil futures were around MYR 6,250 per tonne in late May, the lowest in a week and well below record highs touched last month amid expectations that global supplies recover. The world’s top producer Indonesia has begun processing export licenses and is expected to soon grant permits to palm oil producers, shortly after the government allowed the resumption of shipments of crude palm oil and its derivatives on May 23rd. The trade ministry said that Indonesia aims to export 1 million tonnes of palm oil, targeting producers to allocate 20% of output to remain in Indonesia under a policy of mandatory sales to the local market at a certain price level. In Malaysia, the second-biggest producer, forecasts of good planting weather raised the production outlook.
