Malaysian palm oil futures remained under pressure, extending recent losses to trade below MYR 4,650 per tonne, as weakness in rival edible oils on the Dalian and Chicago exchanges weighed on sentiment. Prices retreated further from last week’s 15-week high, pressured by a sharp decline in crude oil following the U.S. decision to pause strikes on Iran, which dampened the outlook for biodiesel demand.
However, the downside was limited by stronger export demand. Cargo surveyors estimated that palm oil shipments for July 1–25 were up by 8.1% to 15.9% compared with the same period in June. Additional support stemmed from higher biodiesel blending mandates in key exporting countries, including Indonesia and Malaysia.
At the same time, palm oil imports by top buyer India are expected to increase between July and October, as tighter edible oil supplies ahead of the festive season bolster demand. Weather factors also remained supportive, with Malaysia warning that record-high temperatures could curb palm oil output next year.
