Malaysian palm oil futures extended their decline, remaining below MYR 4,700 per tonne and hovering near a one-week low, pressured by weakness in edible oil markets on both the Dalian and Chicago exchanges. Sentiment was further dampened by signs of ample supply, as Malaysia’s palm oil inventories in July rose 3.32% month-on-month and production jumped 9.41%.
Additional downward pressure came from lower crude oil prices, following forecasts of softer global oil demand in 2026, which weighed on the broader edible oils complex. Malaysia also reduced its September crude palm oil reference price, though not sufficiently to bring the export duty below 10%.
Even so, a weaker ringgit helped limit losses by making Malaysian palm oil more competitive in international markets. Export prospects improved as well, with cargo surveyors estimating that Malaysian palm oil shipments increased between 2.6% and 14.8% in the first ten days of August. In key buyer India, expectations of stronger festive-season demand offered additional support, after the country’s edible oil imports in July rose to a ten-month high.