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24.08.202603:57:03UTC+00Palm Oil Pulls Back from 20-Month High

Malaysian palm oil futures hovered just below MYR 5,000 per tonne, ending a five-day winning streak and retreating from their highest level since December 2024. The pullback was driven by profit-taking, amid weaker soyoil prices on both the Dalian and Chicago exchanges. Crude oil prices also eased ahead of an anticipated announcement from Washington on possible new sanctions against Iran, tempering support for vegetable oils that compete with palm.

On the supply side, ample availability added to the downward pressure, with Malaysian palm oil stocks climbing to a five-month high in July. At the same time, cargo surveyor data showed that palm oil exports for August 1–20 fell between 5.5% and 13.2% from the same period in July, signaling softer export momentum.

However, the decline in prices was capped by a weaker ringgit, which improves the competitiveness of Malaysian exports, and by stronger buying from Indonesia ahead of the full rollout of its B50 biodiesel mandate in October. Underlying support also came from concerns that a developing El Niño could exacerbate dryness and constrain output in both Indonesia and Malaysia.

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