Palm Oil Pulls Back from April High as Crude Oil Slips

Malaysian palm oil futures retreated below MYR 4,700 per tonne, snapping recent gains after touching their highest since early April. The pullback was fueled by profit-taking, a firmer ringgit, and weakness in rival edible oils on the Dalian and Chicago exchanges. A sharp drop in crude oil added pressure, as hopes for a diplomatic breakthrough in the Middle East raised expectations of normalized shipping through the Strait of Hormuz. Still, stronger export demand helped limit losses, as cargo surveyor Intertek Testing Services estimated July 1–25 exports rose 15.9% from the same period in June. Higher biodiesel blending mandates in Indonesia and Malaysia are also set to boost consumption. In India, the world’s largest buyer, imports are forecast to rise between July and October as tightening edible oil supplies ahead of the festive season spur purchases. Weather risks remain supportive, with Kuala Lumpur warning that record-high temperatures could curb output next year.

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

Malaysian palm oil futures surged around 1.8% to slightly above MYR 4,700 per tonne, extending recent gains to a one-month peak, as strength in rival edible oils on Dalian and Chicago exchanges boosted sentiment, along with surging crude oil prices amid persistent Middle East tensions. The biodiesel feedstock outlook improved further with higher blending mandates in Indonesia and Malaysia curbing export availability. Demand prospects in top consumer India also brightened after industry officials projected higher edible oil imports between July and October, as tighter domestic supplies ahead of festive demand are expected to boost purchases of palm oil. Weather risks added support after Malaysia’s meteorological agency warned record-high temperatures could affect output next year. Meanwhile, export data from cargo surveyors for July 1–20 were mixed, with AmSpec Agri Malaysia reporting shipments down 0.9% from June, while Intertek Testing Services estimated a 4.1% increase.