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2025-07-31 18:51:26
Palm Oil Under Downward Pressure: Tariffs Approach, Alarms Raise for Supply-Demand Imbalance] ⑴ Palm oil prices closed lower, with cautious market sentiment. ⑵ Kenanga Futures stated that investors remained on the sidelines ahead of the August 1 tariff deadline, while the Federal Reserve's neutral tone provided no clear guidance on the timing of an interest rate adjustment. ⑶ David Ng, a trader at Iceberg X in Kuala Lumpur, noted that concerns about weak demand, coupled with expectations of increased production in the coming weeks, could further weigh on palm oil prices. ⑷ Palm oil contracts for October delivery on the Bursa Malaysia Derivatives Exchange fell 48 ringgit to 4,237 ringgit per ton. ⑸ The market is facing multiple pressures, including macroeconomic uncertainty and shifting industry fundamentals. ⑹ Uncertainty stemming from Trump's tariff rhetoric and the Federal Reserve's cautious approach to the timing of a rate cut are exacerbating market wait-and-see sentiment. ⑺ Furthermore, if palm oil production rises as expected but demand fails to keep pace, prices will face continued downward pressure.
