Malaysian palm oil futures rose on July 8 after a slight decline in the previous session, buoyed by stronger prices in rival edible oils and crude oil.

The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange gained 30 ringgit, or 0.66%, reaching 4,577 ringgit ($1,123.19) per metric ton in early trade. Dalian's most-active soyoil contract increased by 0.84%, while its palm oil contract rose 0.74%. On the Chicago Board of Trade, soyoil prices climbed 1.43%.

Palm oil prices typically track movements in rival edible oils as they compete in the global vegetable oils market. The ringgit, the currency used in palm oil trade, weakened 0.2% against the U.S. dollar, making palm oil cheaper for buyers holding foreign currencies.

Crude oil prices surged nearly 2% following U.S. military airstrikes against Iran and the reimposition of sanctions on Iran's oil sales. These developments have raised concerns about the stability of the fragile truce in the Middle East and the potential for supply disruptions.

European Commission data revealed that European Union soybean imports fell 3% to 14.1 million metric tons in the 2025/26 season ending June 30, while palm oil imports decreased 4% to 2.9 million tons.

Reuters technical analyst Wang Tao noted that palm oil may retest a resistance level at 4,592 ringgit per metric ton, as it has remained within a rising price channel.

Additionally, oil prices jumped and bond futures declined after the U.S. strikes on Iran and reinstated trade sanctions following tanker attacks in the Strait of Hormuz. Stock markets showed volatility as momentum from a record-breaking AI rally ebbed.

Sources