Malaysian Palm Oil Futures Expected to Fall on Friday as Brent Crude Drops 3%

According to Jin10, Malaysian crude palm oil futures were expected to open lower on Friday (June 5) morning, tracking a 3% decline in Brent crude overnight. The selloff followed geopolitical developments after Israel and Lebanon announced a ceasefire agreement, prompting investors to bet on potential peace negotiations between the U.S. and Iran and the possible restoration of normal shipping through the Strait of Hormuz.

However, rising demand for palm oil-based biodiesel in Malaysia and Indonesia, combined with potential El Nino weather threats to Southeast Asian palm oil production, may provide underlying price support.