Malaysian palm oil futures fell below MYR 4,600 per tonne, extending recent declines as a stronger ringgit and weakness in rival edible oils on the Dalian and Chicago exchanges pressured sentiment. Crude oil prices also retreated on the prospect of possible U.S.–Iran talks, further eroding support for vegetable oil markets.
Despite the pullback, palm oil is still on course to post a modest monthly gain of about 0.3% after having fallen in the previous two months. The market has found some support from signs of firmer demand, weather-related supply risks, and higher biodiesel blending mandates in key producing countries.
In major consuming market China, business activity improved in June, with both manufacturing and services expanding modestly, lending some support to the demand outlook. Nevertheless, palm oil prices remain headed for a steep quarterly loss, unwinding nearly a 20% rally notched in the first quarter.
Traders are now awaiting full-June Malaysian export figures from cargo surveyors, after shipments in the first 25 days of the month rose by about 10.6%–11.1% compared with the same period in May.
