PALM NEWS MALAYSIAN PALM OIL BOARD Tuesday, 15 Jul 2025

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OILS & FATS
Palm Oil Dips As US Soyoil Weakens Despite Stronger Crude And Rising Exports
calendar18-06-2025 | linkBusiness Today | Share This Post:

Business Today (17/06/2025) - Palm oil futures edged lower on Tuesday, breaking a three-day winning streak, pressured by losses in rival soyoil prices on the Chicago Board of Trade (CBOT).

At 0232 GMT, the benchmark September contract on the Bursa Malaysia Derivatives Exchange was down RM2, or 0.05%, to RM4,092 (US$965.1) per metric tonne.

While palm oil usually tracks movements in other edible oils due to their competition in the global market, CBOT soyoil slipped 0.87%, contrasting with Dalian’s most-active soyoil contract, which gained 0.81%. Dalian’s palm oil contract rose 1.56%.

On Monday, US soyoil futures had surged to a 20-month high, supported by proposals to increase biofuel blending—expected to raise soyoil demand. Soybean futures touched a one-month high but later pared gains.

Meanwhile, oil prices rose more than 2% on Tuesday amid escalating Middle East tensions. US President Donald Trump’s call for “everyone” to evacuate Tehran raised concerns over widening conflict and possible oil supply disruption.

Higher crude oil prices tend to make palm oil more attractive as biodiesel feedstock, potentially supporting future demand.

According to cargo surveyor Intertek Testing Services, Malaysian palm oil product exports rose 26.3% during June 1–15 compared to May 1–15. Independent inspection firm AmSpec Agri Malaysia reported a 17.8% increase over the same period.

Despite export strength and crude gains, technical indicators suggest palm oil may test support at RM4,042. A break below this level could trigger a drop toward RM3,998.

Separately, US stock futures slipped as geopolitical risks spooked investors, with the fifth day of Israel-Iran conflict fuelling fears of wider regional turmoil.

Read more at https://www.businesstoday.com.my/2025/06/17/palm-oil-dips-as-us-soyoil-weakens-despite-stronger-crude-and-rising-exports/