Malaysian palm oil futures slipped below MYR 4,650 per tonne, retreating from recent gains as traders took profits after prices reached a near four-week high. Sentiment was further pressured by weaker edible oil prices on the Dalian and Chicago exchanges.
In addition, softer crude oil prices reduced support for biofuel feedstocks, following reports of renewed U.S.–Iran mediation efforts. Demand concerns also weighed on the market after India, the world’s largest palm oil importer, saw June imports fall to a 14-month low, as narrowing price discounts curbed buying interest.
However, the decline was limited by supply-side risks. Malaysia’s meteorological agency warned that record-high temperatures are likely next year as El Niño intensifies, posing a threat to palm oil yields. The U.S. Climate Prediction Center similarly reported that El Niño strengthened last month and is expected to persist through early 2027.
Export data for July 1–20 were mixed: surveyor AmSpec Agri Malaysia estimated shipments fell 0.9% from June, while Intertek Testing Services reported a 4.1% increase.
