13.07.202603:38:14UTC+00Palm Oil Recovers on Stronger Energy Markets, Export Momentum

Malaysian palm oil futures rebounded above MYR 4,500 per tonne after steep recent declines, supported by a weaker ringgit, gains in rival edible oils on the Dalian and Chicago exchanges, and firmer crude oil prices as renewed tensions in the Middle East improved risk sentiment. Export performance also strengthened, with cargo surveyors reporting that shipments for July 1–10 rose between 1.6% and 5.1% compared with the same period in June.

In Indonesia, the world’s largest producer, a planned increase in the biodiesel blending mandate to B50 from B40 is expected to boost domestic palm oil consumption to 16.3–17.0 million tonnes this year, up from 15.2 million tonnes in 2023. However, upside in prices was limited after the Malaysian Palm Oil Board reported that end-June inventories rose 4.8% month-on-month to a four-month high, while production climbed 8.1% on the back of seasonally higher output.

On the demand side, palm oil imports into India, the world’s biggest buyer, fell to a 14‑month low in June as consumption softened and the commodity’s price advantage over competing vegetable oils narrowed. Market participants also adopted a cautious stance ahead of China’s June trade figures and second-quarter GDP release, key indicators that could influence the demand outlook from another major importing country.