Palm Oil Set to Gain Nearly 20% in June

Malaysian palm oil futures held around MYR 3,800 per ton and were set to gain nearly 20% in June, having rebounded sharply from 28-month lows as Indian buyers took advantage of depressed prices, while supply-side uncertainties lifted the market further. Palm oil imports to India in June are set to jump 46% from a month ago to their highest in three months as buyers in the world’s top vegetable oil consumer ramped up purchases at discounted prices this month. On the supply side, exports of palm oil products from Malaysia for June 1-25 fell by 4.5% from the same period in May, according to cargo surveyor Intertek Testing Services. Another cargo surveyor, AmSpec Agri Malaysia said exports dropped by 8.7%. In Indonesia, the government is mulling diverting its Europe-bound palm oil exports to Africa after the EU launched the anti-deforestation law that is detrimental to the Southeast Asian country’s top commodity.