Palm Oil Dips on Profit-Taking

Malaysian palm oil futures slipped below MYR 4,650 per tonne, pulling back from recent gains as traders locked in profits after prices hit a near four-week high. Weaker edible oil prices on the Dalian and Chicago exchanges also weighed on sentiment. Meanwhile, softer crude oil prices reduced support for biofuel feedstocks, following reports of renewed U.S.-Iran mediation efforts. Demand worries added to the slide after June palm oil imports in top consumer India dropped to a 14-month low, with narrowing price discounts curbing buying. Still, losses were capped by supply risks: Malaysia’s meteorological agency warned of record-high temperatures next year as El Niño intensifies, threatening yields. The U.S. Climate Prediction Center likewise noted El Niño strengthened last month and is expected to persist through early 2027. Export data for July 1–20 were mixed, with AmSpec Agri Malaysia reporting a 0.9% decline from June, while Intertek Testing Services estimated shipments rose 4.1%.



