FX.co ★ Palm Oil Edges Higher as Export Demand Improves

Malaysian palm oil futures inched higher to trade above MYR 4,550 per tonne after a recent pullback, supported by improved export prospects. Cargo surveyor data showed that palm oil shipments for July 1–15 rose between 4% and 12.4% from the same period in June, signaling stronger external demand. Malaysia also increased its August crude palm oil reference price while maintaining the export duty at 10%. At the same time, crude oil prices stayed elevated amid supply disruptions in the Strait of Hormuz, enhancing palm oil’s attractiveness as a biodiesel feedstock.

Upside momentum, however, was limited by a firmer ringgit and weakness in rival edible oils on the Dalian and Chicago exchanges. Further headwinds stemmed from softer demand expectations in key importing countries. In India, palm oil imports slipped to a 14-month low in June as a reduced discount to competing oils dampened buying interest, while China’s economy grew in Q2 at its slowest pace since late 2022, heightening concerns over future demand.