Malaysian palm oil futures slipped below MYR 4,560 per tonne, paring some of the previous session’s gains as a stronger ringgit and weaker Dalian palm oil futures dampened sentiment. Further downward pressure came from crude oil prices, which fell to their lowest level since February amid signs of progress in indirect U.S.-Iran talks, eroding support for biofuel-linked vegetable oils. Market participants also turned cautious ahead of key monthly supply and demand reports due later this month.
Nevertheless, the decline was capped by firmer prices in competing edible oils on the Chicago Board of Trade. On the fundamental front, Indonesia’s new B50 biodiesel mandate officially came into force on July 1, reinforcing expectations of stronger domestic palm oil consumption. At the same time, official data showed that Indonesia exported 8.92 million tonnes of crude and refined palm oil in January–May, a 7.4% increase year-on-year. Cargo surveyor data indicated that palm oil exports for June 1–25 rose by 10.6%–11.1% from May, signaling improving external demand.
