Malaysian palm oil futures inched lower, trading just under MYR 4,500 per tonne and extending their recent downturn, as a stronger ringgit and softer edible oil prices on the Dalian exchange dampened sentiment. Trading was further subdued with Chicago markets closed for a holiday, while investors remained cautious ahead of key supply–demand reports due next week.
On a weekly basis, palm oil is headed for a second consecutive decline, down about 1.5%. The weakness has been driven in part by data showing that imports by top buyer India fell in June to a 14‑month low, as sluggish demand and a shrinking price discount relative to rival vegetable oils curbed buying interest.
However, losses were partially contained by firmer crude oil prices and signs of improving export demand. Cargo surveyor data indicated that palm oil shipments during June 1–25 rose by between 10.6% and 11.1% compared with May.
At the same time, the B50 biodiesel mandate in Indonesia, the world’s largest palm oil producer and exporter, officially came into force on July 1. The higher blending requirement is expected to boost domestic consumption and continues to provide an underlying layer of support to the market.
