Palm Oil Extends Losses

Malaysian palm oil futures were below MYR 4,500 per tonne, falling for the second session and pulling back from their highest in 5-1/2 months. The drop was driven by profit-taking and weakness in rival edible oils on the Dalian and CBOT exchanges, while caution prevailed ahead of export estimates for August 1–20 from cargo surveyors. Still, losses were capped by bets of festive-led demand from top buyer India and policy support in China, another major consumer. Meantime, the Malaysian Palm Oil Council (MPOC) expects prices to hold above MYR 4,300 in the near term due to tighter supply and rising biodiesel demand. It noted that the USDA projects over half of U.S. soybean output will be used for biodiesel in 2026, while Indonesia’s planned B50 mandate could raise its palm oil requirement to 16 million tonnes from 13 million in 2025. MPOC added it does not foresee a major stock build-up in September and October, with weaker production in Peninsular Malaysia likely capping output growth.