Malaysian palm oil futures climbed more than 2% to above MYR 4,500 per tonne, extending recent gains and marking their highest level in a week. Sentiment was supported by a weaker ringgit, stronger Dalian palm oil contracts, and firmer Chicago soyoil. Crude oil prices also rose sharply as efforts to end the U.S.-Israeli war with Iran appeared to stall, heightening worries over potential supply disruptions and lifting the broader edible oils complex.
Gains were limited, however, by soft export demand. AmSpec Agri Malaysia reported that shipments in the first half of May were down 16.5% month-on-month. Concerns over demand persisted after April activity data in China, a key buyer, pointed to slowing momentum. In India, the world’s largest consumer, palm oil imports fell 26% in April from March to a four-month low, weighed by weaker institutional buying and a reduced discount to rival vegetable oils.
Separately, Malaysia lowered its June crude palm oil reference price but kept the export duty unchanged at 10%.
