Malaysian palm oil futures slip below MYR 4,700 despite stronger July exports

Prices rebounded above MYR 4,650 as stronger rival edible oils and firmer crude improved sentiment, though gains were capped by a stronger ringgit and a sharp drop in EU imports.

Summary

Malaysian palm oil futures rebounded to trade above MYR 4,650 per tonne after recent losses, supported by stronger Dalian palm oil and Chicago soybean oil prices as well as higher crude oil, which improved the biodiesel outlook. Demand also remained supportive, with cargo surveyors estimating Malaysia's palm oil exports for July 1-25 rose between 8.1% and 15.9% from the same period in June, while India's imports are expected to increase between July and October ahead of the festive season. Indonesia is reportedly seeking a U.S. exemption for palm oil under the new 10% tariff regime to protect export competitiveness. Gains were tempered by a stronger ringgit and reports that European Union palm oil imports for the 2026/27 marketing year, which began in July, fell 39% year on year to 0.13 million tonnes.

Terms & Concepts
  • biodiesel outlook: Market expectations for biofuel demand that can influence prices of vegetable oils used as feedstocks such as palm oil.
  • Dalian palm oil: Palm oil futures traded on China's Dalian market, a key benchmark that often shapes sentiment in Asian edible oil markets.
  • marketing year: A 12-month period used to track production, trade, and consumption for an agricultural commodity.