Malaysian palm oil futures slipped below MYR 4,650 per tonne, pulling back from a recent rally as traders took profits after prices hit a two-week high. Market sentiment was further dampened by declines in rival edible oils on the Dalian and Chicago exchanges, while weaker crude oil prices reduced support for the broader vegetable oil complex.
Fundamentals remained bearish. A Reuters survey indicated that Malaysia’s palm oil stocks likely rose for a second consecutive month in May, as sluggish exports outweighed lower production. Cargo surveyors reported that May shipments fell by 8.8%–15.5% from April, highlighting subdued overseas demand.
India, the world’s largest palm oil importer, slightly increased purchases from April’s four-month low, but buying remained below typical levels. At the same time, uncertainty surrounding Indonesia’s export policies and intensifying competition from alternative vegetable oils added to the downside pressure. Even so, a weaker ringgit helped limit losses by making Malaysian palm oil more competitive in export markets.
