Malaysian palm oil futures fell around 1% to hover below MYR 4,280 per tonne, slipping after a 2.5% rally in the previous session. The pullback came as traders locked in profits after the contracts hit a near four-month high. Sentiment was further pressured by weakness in soyoil prices on both the Chicago Board of Trade and the Dalian exchange, as well as a slightly stronger ringgit, which makes palm oil more expensive for foreign buyers.
On the export front, signs of softening demand emerged after cargo surveyor Intertek Testing Services estimated that Malaysian palm oil product exports fell 3.5% during July 1–20 compared to the same period last month. Additionally, concerns about near-term demand were fueled by ample inventories in key importers such as India and China. However, losses were partially capped as Malaysia raised its August crude palm oil reference price, a move that reflects recent market strength. As a result, the export duty was increased to 9% from 8.5% in July.
