Palm Oil Retreats After Two-Day Rise

Malaysian palm oil futures fell over 1% to below MYR 4,180 per tonne, snapping a two-day winning streak as traders took profits after prices hit a near three-month high. Sentiment was further weighed by weakness in the broader energy market, with crude oil prices sliding amid geopolitical risks, including a U.S. deadline for Russia to end the war in Ukraine. Adding pressure, industry data showed June inventories rose 2.41% to 2.03 million tonnes—an 18-month high. In top buyer China, Q2 GDP growth slowed to its weakest pace in three quarters, with momentum expected to ease further in H2 amid mounting headwinds. Concerns over impending U.S. tariffs ahead of the August 12 deadline and ongoing weather uncertainties also clouded the outlook. Still, expectations of stronger exports in July helped limit losses, as palm oil regained price competitiveness. In India, the world’s largest palm oil importer, June purchases jumped to an 11-month high as buyers restocked on lower prices.