Malaysian palm oil futures were trading near MYR 3,400 per tonne after falling to around MYR 3,260 earlier in the week, supported by strong demand from China and India. China reportedly increased its purchases of tropical oil in May, as it tried to replenish its stockpiles ahead of the peak consumption season. For the week, however, the contract was on course for a second weekly drop, with signs of rising production and inventories growing. Investors now await Malaysian Palm Oil Board data due Monday to study the extent of a rise in May production. Reuters projected that the country’s palm oil production jumped 21% to 1.45 metric tons last month, the highest level since last December.
