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MarketsPalm Oil

Palm Oil Rebounds Amid Oil Strength, Firm Exports

Malaysian palm oil futures traded above MYR 4,600 per tonne, recovering from the prior weakness as stronger edible oil prices on the Dalian and Chicago exchanges lifted sentiment. Higher crude oil prices also provided support after intensified attacks in the Middle East disrupted energy shipments through the Strait of Hormuz, boosting the appeal of biodiesel feedstocks. Export demand remained firm, with cargo surveyors estimating palm oil shipments during July 1-15 increased by between 4% and 12.4% from the same period in June. Supply concerns also persisted after the U.S. Climate Prediction Center said El Niño had strengthened over the past month and is expected to intensify through 2026 before lasting into early 2027, raising risks of lower palm oil production in the coming months. However, gains were capped by weaker demand from top buyer India, where palm oil imports fell to a 14-month low in June as the narrower price discount against competing edible oils discouraged purchases.

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