15.06.202603:23:38UTC+00Palm Oil Slips Further to Three-Week Low

Malaysian palm oil futures extended their decline, trading below MYR 4,500 per tonne and touching a three-week low, weighed down by a stronger ringgit and weakness in competing edible oils on the Dalian and Chicago exchanges. Sentiment was further hit by a steep drop in crude oil prices to their lowest level since March, after the U.S. and Iran reached an initial agreement aimed at ending the war and reopening shipping lanes through the Strait of Hormuz.

At the same time, Malaysia’s lower crude palm oil reference price for July kept the export duty unchanged at 10%, offering limited support to outbound shipments. Downside was partly contained by firmer demand, with cargo surveyors reporting that exports in June 1–10 rose by between 3.5% and 4.9% from May. Weather concerns also provided some underpinning, after Kuala Lumpur warned that El Niño could reduce yields by 8%–10% this year.

In India, the world’s largest buyer, palm oil imports in May ticked up from a four-month low but remained below typical levels, as refiners continued to favor cheaper soyoil amid palm oil’s diminishing price advantage.