Malaysian palm oil futures continued to retreat, slipping below MYR 4,600 per tonne amid a stronger ringgit and weakness in rival edible oils on the Dalian Exchange. Fresh figures from the Malaysian Palm Oil Board showed that June inventories climbed 4.8% from May to a four-month high, while production rose 8.1% on the back of stronger seasonal output. Production has accelerated further as mills in Perak struggle to handle an influx of fresh fruit bunches.
On the demand side, India’s palm oil imports fell in June to a 14-month low, pressured by sluggish consumption and a shrinking price advantage over competing edible oils. Even so, futures are still on track for their first weekly gain in three weeks, supported by Indonesia’s B50 biodiesel mandate in the world’s top supplier, which is expected to boost palm oil use to 16.3–17.0 million metric tons this year, up from 15.2 million previously.
Meanwhile, cargo surveyors reported that palm oil exports in July 1–5 were 10.6%–11.1% higher than in the same period in June, with traders now awaiting the full ten-day shipment data.