Malaysian palm oil futures held above MYR 3,900 per tonne, remaining close to the over-three-month high of MYR 3,985 touched on June 3rd amid persistent concerns of low supply for key oils. Rain in the US Midwest failed to significantly improve the region’s soybean crops, while low farming capacity and trade barriers in Ukraine pressured sunflower and rapeseed output prospects. Demand was also seen higher for palm oil as a feedstock for biodiesel in Southeast Asia as Saudi Arabia and Russia extended crude oil output cuts. Adding to the stronger demand momentum, Indonesia plans to raise its mandatory palm oil-based biodiesel blending to 40% in the next few years after increasing it from 30% to 35% in February. On the supply side, exports of Malaysian palm oil products for June fell 6.9%, cargo surveyor Intertek Testing Services reported. Another cargo surveyor, AmSpec Agri Malaysia, said exports rose 0.6%.
