Palm Oil Recovers on Stronger Energy Markets, Export Momentum

Malaysian palm oil futures rebounded above MYR 4,500 per tonne after recent sharp losses, supported by a weaker ringgit, stronger edible oils in Dalian and Chicago, and firmer crude oil as renewed Middle East tensions lifted sentiment. Exports also improved, with cargo surveyors noting July 1–10 shipments rose 1.6%–5.1% from the same period in June. In top producer Indonesia, a move to raise the biodiesel mandate to B50 from B40 is expected to spur palm oil consumption to 16.3–17.0 million tons this year from 15.2 million. Gains, however, were capped after the Malaysian Palm Oil Board said June inventories climbed 4.8% mom to a four-month top, while production grew 8.1% on seasonal output. Meanwhile, palm oil imports in India, the world’s largest consumer, fell to a 14-month low in June amid weak demand and a narrowing price advantage over rival oils. Traders also stayed cautious ahead of China’s June trade data and Q2 GDP, which could shape the demand outlook from another major buyer.

Register a Revolut Business Account