Palm oil prices were little changed on Wednesday

Malaysian palm oil futures ended trading on July 15 slightly lower, snapping a two-session winning streak. The benchmark September contract on the Bursa Malaysia Derivatives Exchange fell by 4 ringgit, or 0.09%, to 4,569 ringgit ($1,120.95) per ton.

Market participants said prices remained range-bound due to the lack of major market-moving developments. While concerns over the potential impact of El Niño on palm oil production persist, demand remains subdued and uncertainty surrounding the situation in the Middle East continues to weigh on market sentiment.

Price movements in competing vegetable oils were mixed. The most-active Dalian soyoil contract gained 0.08%, while the Dalian palm oil contract rose 0.02%. Soyoil futures on the Chicago Board of Trade increased by 0.69%. Palm oil prices generally track movements in rival vegetable oils as they compete in the global edible oils market.

The market also received support from stronger crude oil prices, which rose by around 1% following escalating tensions involving Iran. Higher crude oil prices improve the competitiveness of palm oil as a biodiesel feedstock. Meanwhile, Indonesia announced diesel fuel subsidies for medium-sized fishing vessels, financed through export levies on palm oil and cocoa.

According to industry data, Indonesia’s palm oil exports fell by 25.1% year-on-year in May to 1.996 mln tons. At the same time, Malaysian palm oil exports during the first half of July increased by 4–12.4%, according to cargo surveyors, indicating a gradual recovery in export demand.

Tags: palm oil, prices