Palm oil prices fall on increasing June stocks
Malaysian palm futures dropped on Thursday, ending three sessions of gains. Inventory in the second largest palm oil exporter in the world rose to an unprecedented 18-month-high.
At closing, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange was down 10 Ringgit or 0.24% to 4,147 Ringgit per metric ton.
"Weaker-than-expected exports in June 2025, combined with an increase in stockpile levels, pressured prices," said Darren Lim, commodities strategist at brokerage Phillip Nova.
Malaysian palm oil stock rose by 2.41% at the end June to reach 2.03 million metric tonnes, marking the fourth consecutive month of growth. This was due to an unexpected decline in exports, which outweighed a slump in production, and a surge in domestic consumption.
According to data provided by cargo surveyor Intertek Testing Services, and inspection company AmSpec Agri Malaysia, exports of Malaysian products containing palm oil for the period July 1-10 rose between 5.3% to 12%.
Dalian's palm oil contract, which is the most active contract in Dalian, lost 0.21%. Chicago Board of Trade soyoil prices rose by 0.81%.
As palm oil competes to gain a share in the global vegetable oil market, it tracks the prices of competing edible oils.
According to Wang Tao, the price of palm oil FCPOc3 could retest the support level at 4,134 Ringgit per metric tonne. A break below this mark would open the door to the range between 4,096 and 4,115 Ringgit. (Reporting and editing by Janane Vekatraman, Sonia Cheema, and Bernadette Christy)
(source: Reuters)
