Malaysian palm oil futures pull back from 20-month high

Malaysian palm oil futures hovered below MYR 5,000 per tonne, snapping five sessions of gains and pulling back from their highest level since December 2024.

Traders booked profits amid weaker soyoil prices on the Dalian and Chicago markets.

Crude oil also eased ahead of an expected announcement from Washington on potential new sanctions against Iran, reducing support for competing vegetable oils.

Ample supplies added further pressure, with Malaysian palm oil inventories rising to a five-month high in July.

Meanwhile, cargo surveyors estimated that palm oil shipments for August 1—20 fell between 5.5% and 13.2% from the same period in July, pointing to softer export momentum.

Still, losses were limited by a weaker ringgit, while buyers in top supplier Indonesia stepped up purchases ahead of the full implementation of the B50 biodiesel mandate in October.

Concerns that a developing El Niño could intensify dryness and curb output in Indonesia and Malaysia also provided underlying support.