Malaysian Palm Oil: futures consolidated above the MYR 6,200-a-tonne level, rebounding from a five-week low around MYR 5,925 after Indonesia said it would impose a domestic sales requirement for the vegetable oil.
This move came in the aftermath of President Joko Widodo’s signaling that Jakarta would lift its export ban later this month, allowing supply from the world’s biggest producer to re-enter the international market.
Adding to the chipper mood were prospects of robust export demand from Malaysia after such a ban.
Shipments from the world’s second-largest producer for May 1-15 rose 23.9% to 613,649 tonnes from the same week in April, data from cargo surveyor Societe Generale de Surveillance showed. Still, the commodity lost roughly 2% this week, putting it on track for its third weekly decline.