Palm Oil Slips Below MYR 4,250 as Export Outlook Dim

Malaysian palm oil futures traded below MYR 4,250 per tonne, marking losses for the second session amid weakness in rival edible oils on the Dalian and CBoT exchanges. Sentiment was further weighed by signs of weak exports, with cargo surveyors noting that shipments of Malaysian palm oil products for July 1–25 fell between 9.2% and 15.2% from June. Bets of ample supplies also pressured prices, as the Malaysian Palm Oil Board projected output could rise to 19.5 million tonnes in 2025 from 19.3 million in 2024, aided by improved labor availability. However, a weaker ringgit and higher crude oil prices limited further losses, after the U.S. reached a trade deal with the EU and signaled a possible extension of its tariff truce with China. Meanwhile, strong demand from top buyer India is likely to continue ahead of the Diwali festival in mid-October. In June, India’s palm oil imports surged to an 11-month high, driven by low inventories and favorable pricing over soyoil and sunflower oil.