Malaysian palm oil futures hover below MYR 4,950 as demand weakens

  • Malaysian palm oil futures initially gained nearly 2% to around MYR 4,900 per tonne before hovering below MYR 4,950 as the rally faded.
  • Cargo surveyors estimated August Malaysian shipments fell 6.5%–14.9% from July, compared with an earlier 11.4%–20% estimate for August 1-25.
  • July inventories reached a five-month high, while EU palm oil imports fell 21% year on year in the 2026/27 season beginning in July.

Malaysian palm oil futures initially rose nearly 2% to around MYR 4,900 per tonne and reached a one-week high after a holiday, but later lost momentum as weaker Dalian and Chicago edible oils and soft export demand weighed on sentiment. Cargo surveyors provided differing estimates for August shipments, with the newer estimate showing a 6.5%–14.9% decline from July, versus an earlier estimate of 11.4%–20% for August 1-25 compared with the same period in July. July inventories reached a five-month high, while EU palm oil imports for the 2026/27 season fell 21% year on year. A weaker ringgit, firmer crude oil and concerns about supply disruptions offered support, while rising El Niño risks raised production concerns across Southeast Asia.

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