Malaysia palm oil early outlook: Palm oil futures expected to open lower

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On May 24th, Tuesday morning, the crude palm oil futures market of Malaysia’s Derivatives Exchange (BMD) may open lower, following the decline in the external vegetable oil market. The decline in U.S. soybean and soybean oil futures markets is expected to weigh on the early performance of Malaysian crude palm oil futures. Palm oil production in Malaysia and Indonesia tends to increase, while the pace of palm oil exports in Malaysia has slowed, which is also unfavorable for prices. The South Malaysian Palm Oil Millers’ Association (SPOMMA) estimated that Malaysia’s palm oil production increased by 18.5% month-on-month from May 1st to 20th. Shipping survey agencies said that Malaysia’s palm oil exports increased by 1.6% to 2.9% month-on-month from May 1st to 20th. In contrast, palm oil exports increased by 4% to 5.2% month-on-month from May 1st to 15th.