Palm Oil Continues Recent Decline on Weaker Crude Oil

Malaysian palm oil futures remained under pressure, extending recent losses to trade below MYR 4,650 per tonne as weaker rival edible oils on the Dalian and Chicago exchanges weighed on sentiment. Prices moved further away from last week’s 15-week high amid a sharp decline in crude oil prices after the U.S. paused strikes on Iran, reducing support by weakening the biodiesel outlook. Still, losses were capped by stronger export demand, with cargo surveyors estimating that July 1–25 palm oil shipments rose between 8.1% and 15.9% from the same period in June. Additional support came from higher biodiesel blending mandates in exporting countries such as Indonesia and Malaysia. Meanwhile, palm oil imports by top buyer India are expected to rise between July and October as tighter edible oil supplies ahead of the festive season boost demand. Weather also remained supportive, with Malaysia warning that record-high temperatures could curb output next year.


