Weaker rival edible oils and a lower Indonesian reference price pressured the market, though July export gains, biodiesel demand and expected Indian buying helped keep prices up for the month.
Malaysian palm oil futures slipped below MYR 4,650 per tonne, reversing recent gains as weaker rival oils in Dalian and Chicago weighed on sentiment. The benchmark contract was on track to end the week down about 1.7%, snapping a three-week winning streak after Indonesia, the world's largest palm oil producer, lowered its August crude palm oil reference price to USD 996.52 per tonne from USD 1,000.90 in July. Even so, prices remained about 2% higher for the month, marking a first monthly gain in four months. Support came from roughly a 20% rise in crude oil during July, which improved palm oil's appeal as a biodiesel feedstock, as well as firm export demand. Cargo surveyors said shipments for July 1-25 rose between 8.1% and 15.9% from the same period in June. Additional support came from higher blending mandates in Indonesia and Malaysia, weather risks to next year's Malaysian output, and expectations that India, the top buyer, will increase imports between July and October ahead of festive demand.