Malaysian palm oil futures have been trading at around 2-month highs above RM4,300 a tonne since July 23rd, supported by lingering concerns over lower output. Malaysian palm oil production for July is expected to be lower on the month on lower oil yields and labour shortages at palm plantations. Considering the first half of the year domestic crude palm oil output is already 8% lower when compared with the same period last year, according to the Malaysian Palm Oil Board. Meantime, imports to India and China are falling due to high prices while demand for Indonesian oil is growing in India on higher supply levels and improved discounts.
