FX.co ★ Palm Oil Rebounds Amid Oil Strength, Firm Exports

Malaysian palm oil futures climbed back above MYR 4,600 per tonne, rebounding from recent weakness as firmer edible oil prices on the Dalian and Chicago exchanges improved market sentiment. The rally was further supported by higher crude oil prices, following escalated attacks in the Middle East that disrupted energy flows through the Strait of Hormuz and enhanced the relative attractiveness of biodiesel feedstocks.

Export demand remained robust, with cargo surveyors estimating that palm oil shipments for July 1–15 rose between 4% and 12.4% from the same period in June. Supply concerns also underpinned prices after the U.S. Climate Prediction Center reported that El Niño had strengthened over the past month and is expected to intensify through 2026 and persist into early 2027, heightening the risk of reduced palm oil output in the coming months.

Nonetheless, upside was limited by softer demand from top importer India, where palm oil purchases fell to a 14‑month low in June as a narrowing price discount relative to competing edible oils curbed buying interest.