Malaysia Palm Oil Futures Expected to Decline on Monday Amid Rising Inventory; India Imports Hit 14-Month Low

According to Jin10 Futures, Malaysia's crude palm oil futures on the Bursa Malaysia Derivatives exchange are expected to decline at Monday's opening on July 6, reflecting weak market fundamentals. Analysts attribute the decline to rising production expectations that could increase inventory levels, with surveys showing June-end palm oil stocks potentially reaching historical highs for the period as production growth outpaces demand.

India's June palm oil imports are estimated to fall to a 14-month low due to weak demand and narrowing price spreads versus competing oils. However, Indonesia's mandatory B50 biodiesel blending program, effective July 1, is expected to boost domestic consumption and tighten export supply. Additionally, El Niño threatens Southeast Asian production, which may limit further downside for palm oil.