2026.06.2603:59:17UTC+00Palm Oil Recovers But Heads for Weekly Loss

Malaysian palm oil futures were trading near MYR 4,600 per tonne, recovering from recent losses as stronger vegetable oil prices on China’s Dalian Commodity Exchange improved market sentiment. Prices also drew support from firmer export demand, with cargo surveyors estimating that shipments rose between 10.6% and 11.1% in the first 25 days of June.

On the supply side, top producer Indonesia is set to implement its B50 biodiesel mandate from July 1, allowing a three-month transition period for retailers to clear existing stocks. The move reinforces expectations of higher domestic consumption. At the same time, supply concerns remained in focus as weather-related risks continued to threaten production prospects.

In India, palm oil imports are projected to exceed 600,000 tonnes in June, up from 549,356 tonnes in May, highlighting resilient demand from the world’s largest buyer. Even so, the benchmark contract was still heading for a weekly loss of about 1%, giving back part of the previous week’s strong gains, as a stronger ringgit and a sharp fall in crude oil prices—amid easing concerns over Middle East supply disruptions—limited further upside.