Malaysian palm oil futures eased, trading just below MYR 4,600 per tonne after recent gains, pressured by weaker edible oil prices on the Dalian exchange. Sentiment was further weighed down by demand concerns, as palm oil imports by top buyer India dropped to a 14‑month low in June, with a reduced discount to rival oils dampening buying interest. Adding to the cautious tone, China’s economy expanded in Q2 at its slowest pace since late 2022, heightening worries over demand from another major importer.
Despite the pullback, the benchmark contract was still set for its first weekly advance in four weeks, up about 1.7%, supported by a better export outlook. Cargo surveyors reported that palm oil shipments for July 1–15 were up between 4% and 12.4% from the same period in June. At the same time, Malaysia raised its crude palm oil reference price for August while maintaining the export duty at 10%. Elevated crude oil prices, underpinned by constrained traffic through the Strait of Hormuz as the U.S. and Iran stepped up attacks, also underlined palm oil prices by strengthening prospective biodiesel demand.
