Palm Oil Eases as Stronger Ringgit, Inventory Outlook Weigh

Malaysian palm oil futures slipped below MYR 4,700 per tonne, reversing recent gains as a stronger ringgit and weaker Chicago soyoil prices dampened sentiment. Meanwhile, crude oil prices retreated, further weighing on palm oil as lower energy prices reduce biodiesel demand prospects. Market pressure also stemmed from Reuters forecasts that Malaysia’s palm oil inventories climbed to a five-month high in July, reflecting seasonally stronger output. Traders stayed cautious ahead of China’s July trade data, which may offer fresh demand signals from a major palm oil consumer. Still, losses were tempered by firmer edible oil prices on the Dalian exchange and solid export momentum. Cargo surveyors estimated Malaysia’s July palm oil shipments rose 12.1%–19.5% from June. In top buyer India, edible oil imports hit a 10-month peak in July as refiners stepped up palm oil and soyoil purchases to rebuild stocks before the festive season amid tightening domestic supplies.

Malaysian palm oil futures edged higher to around MYR 4,700 per tonne, extending recent gains as a weaker ringgit and firmer Dalian palm oil contracts lifted sentiment. Stronger exports also lent support, with cargo surveyors noting shipments in July grew between 12.1% and 19.5% from June. In India, the world's largest palm oil importer, edible oil imports climbed to a 10-month peak in July as refiners ramped up purchases of palm oil and soyoil to replenish inventories ahead of the festival season amid tightening domestic supplies. In top supplier Indonesia, palm oil exports rose 2.5% yoy in H1 of 2026, highlighting resilient overseas demand. However, gains were limited by weaker Chicago soyoil futures. Traders also adopted a cautious stance ahead of July trade data in China, which could offer fresh insights into demand from one of the major palm oil consumers. Meanwhile, Reuters forecast Malaysia's palm oil stocks are likely to hit a five-month high in July, tempering the upside.

Malaysian palm oil futures strengthened, hovering above MYR 4,650 per tonne and halting recent losses amid weaker ringgit and firmer rival edible oils on the Dalian and Chicago exchanges. Prices also found support from a modest rise in crude oil prices, on lingering uncertainty over diplomatic efforts to resolve the U.S.-Iran conflict, which continued to underpin the biofuel outlook. Optimism over exports further lifted the market, with cargo surveyors noting Malaysian palm oil shipments in July rose between 12.1% and 19.5% from June. Support also came from top grower Indonesia, where exports of palm oil rose 2.5% yoy in H1 2026, while stronger purchases by the world's largest consumer India are expected between July and October ahead of the festive season. However, gains were capped by Reuters forecasts that inventories likely hit a five-month high in July. Caution also grew ahead of China's July trade data, which could provide fresh clues on demand from major palm oil consumers.