Palm oil futures near 2-month high on expectations of lower supply, firmer crude in Commodity News 04/06/2026 Crude palm oil prices rose to near two-month highs on June 3 after a key industry group in Malaysia cut production estimate for May, coupled with higher oil prices amid the Middle East conflict, traders and analysts told Platts, part of S&P Global Energy. The benchmark crude palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange rose nearly 2.9% to MR 4,670 ($1,169.08)/metric ton on June 3, the highest level since April 9. The exchange was closed on June 1 and 2 due to public holidays. Malaysia is the world’s second-largest producer and exporter of palm oil after Indonesia. The two countries account for about 85% of the world’s palm oil supply. The Southern Peninsula Palm Oil Pressers Association reduced Malaysia’s palm oil production estimate for May by 10.1% from a month ago, it said in a statement on June 3. “There was a lot of funds buying today after the Southern Peninsula Palm Oil Pressers Association said production in May is expected to be down 10.1% from the month before,” said Paramalingam Supramaniam, director at Pelindung Bestari, a Malaysia-based brokerage firm. He added that the further escalation of tensions in the Middle East also pushed prices higher. Crude oil and palm oil prices usually move in tandem because palm oil is a primary feedstock for biodiesel. Higher crude oil values typically boost palm oil demand and prices. “Rising crude oil contributed to palm oil’s rally today,” a vegetable oil trader based in India said. At 1005 GMT, the front-month August ICE Brent futures contract was up $2.31/b from the previous close at $98.31/b, while the NYMEX July light sweet crude contract was $2.65/b higher at $96.39/b. Meanwhile, in Indonesia, domestic palm oil prices rebounded on June 3. Prices of domestic palm oil tenders by Indonesia’s state-owned plantation company PTPN, or Perkebunan Nusantara, have fallen in M