Malaysian palm oil futures eased after recent gains, trading just below MYR 4,600 per tonne, pressured by a stronger ringgit and weaker demand prospects from key buyer China, where the economy expanded at its slowest pace in three and a half years. In India, the world’s largest palm oil importer, purchases fell in June to a 14‑month low as softer demand and a shrinking price discount to rival vegetable oils curbed buying interest. At the same time, the EU confirmed that imports of palm oil derivatives will be covered by its anti‑deforestation regulations starting in December 2027.
Downside pressure was limited, however, by gains in competing edible oils on the Dalian and Chicago exchanges, as well as by firmer crude oil prices after U.S. President Trump reimposed a naval blockade in the Strait of Hormuz. In addition, Indonesia’s B50 biodiesel mandate, in the world’s largest palm oil-producing country, is expected to boost domestic consumption. Traders are now awaiting export figures for the first half of July, after shipments in the July 1–10 period rose by 1.6%–5.1% from the same period in June.
