Prices hovered near MYR 4,750 per tonne at their highest since early April, supported by stronger Dalian oils, a weaker ringgit, firmer crude and higher biodiesel mandates.
Malaysian palm oil futures hovered around MYR 4,750 per tonne, extending recent gains to their highest level since early April as stronger edible oils on the Dalian market, a weaker ringgit and firmer oil prices supported sentiment. The market was also on track for a third weekly gain, up about 3.3% so far, with higher biodiesel mandates in Indonesia and Malaysia expected to boost demand for palm oil as a biofuel feedstock. Demand prospects in top buyer India improved after forecasts pointed to higher edible oil imports between July and October, as tightening supplies ahead of the festive season are likely to lift palm oil purchases. Weather concerns added support after Kuala Lumpur warned that record-high temperatures could weigh on production next year. July 1–20 export data remained mixed, with AmSpec Agri reporting shipments fell 0.9% from June while Intertek Testing Services reported 4.1% growth.