Malaysian palm oil futures remained under pressure, extending recent losses to trade below MYR 4,650 per tonne as weaker rival edible oils on the Dalian and Chicago exchanges weighed on sentiment.

Prices moved further away from last week’s 15-week high after a sharp decline in crude oil prices. The fall followed the U.S. decision to pause strikes on Iran, which reduced support for the market by weakening the biodiesel outlook.

The move highlights how palm oil often trades alongside broader vegetable oil and energy markets: when crude softens, the biodiesel channel can lose some of its support, while weakness in competing oils can also spill over into Malaysian futures.

Losses were limited by stronger export demand. Cargo surveyors estimated that palm oil shipments from July 1 to July 25 rose between 8.1% and 15.9% from the same period in June.

Support also came from higher biodiesel blending mandates in exporting countries such as Indonesia and Malaysia.

In addition, palm oil imports by top buyer India are expected to rise between July and October as tighter edible oil supplies ahead of the festive season boost demand.

Weather conditions also remained a factor, with Malaysia warning that record-high temperatures could curb output next year.

Source: Trading Economics