Malaysian palm oil futures rebounded to trade above MYR 4,650 per tonne, erasing recent losses as firmer Dalian palm oil and Chicago soybean oil prices lifted market sentiment. Rising crude oil prices, driven by a drawdown in U.S. crude inventories, further supported the outlook for biodiesel demand and added upward pressure to prices.
On the demand side, cargo surveyor estimates indicate that Malaysia's palm oil exports for July 1–25 rose between 8.1% and 15.9% compared with the same period in June. Purchases from top buyer India are also expected to increase between July and October, as tightening edible oil supplies ahead of the festive season stimulate stronger buying interest.
At the same time, Indonesia is reportedly seeking a U.S. exemption for palm oil under the new 10% tariff regime in order to protect its export competitiveness. However, the upside in prices was partly capped by a stronger ringgit and data showing that European Union palm oil imports for the 2026/27 marketing year, which began in July, slumped 39% year-on-year to 0.13 million tonnes.
