Malaysian palm oil futures saw their largest decline in a month on Tuesday, June 23, 2026, with the benchmark September 2026 CPO contract on the Bursa Malaysia Derivatives Exchange falling by 0.71%, or RM33 per ton, to RM4,639 per ton at midday. This drop interrupted a two-session rally that had previously pushed prices to a six-week high. Analysts attributed the weakness primarily to the softening prices of competing vegetable oils and the strengthening Malaysian ringgit.
In the broader vegetable oil market, soybean oil futures on the Chicago Board of Trade (CBOT) decreased by approximately 0.49%, while the most active soybean oil contract on China’s Dalian Commodity Exchange fell by 0.29%. The Dalian palm oil contract also slipped 0.34%, indicating a widespread downturn across the vegetable oil complex. The decline in crude oil prices, which hit two-week lows, also dampened sentiment as cheaper fossil fuels make biodiesel a less attractive option, thereby reducing demand for palm oil as a feedstock.
The appreciation of the Malaysian ringgit against the U.S. dollar further contributed to the price decline. A stronger ringgit makes Malaysian palm oil more expensive for international buyers holding foreign currencies, which can limit export demand and necessitate a downward adjustment in local ringgit-denominated prices to maintain competitiveness. This exchange-rate pass-through mechanism puts pressure on palm oil prices, as noted by financial analysts.
Despite the overarching downward pressure, positive export data provided some support to the market. Cargo surveyor Intertek Testing Services (ITS) reported that Malaysian palm product exports from June 1 to June 20 increased by 19.1% compared to the previous month. Independent inspection company AmSpec Agri Malaysia reported an even more substantial increase, with shipments rising by 25% month-on-month during the same period. These strong export figures indicate resilient international demand for Malaysian palm oil, which could offer underlying support in the coming weeks.
Looking ahead, market participants are closely monitoring global vegetable oil prices, currency movements, and export trends for short-term price direction. Reuters technical analyst Wang Tao predicts that the FCPO3 palm oil price is likely to break the RM4,697 per metric ton resistance level in the third quarter and could rise to a range of RM4,933-RM5,226 per ton. However, current profit-taking activities and the broader weakness in rival oils continue to exert downward pressure on prices, with immediate support for palm oil seen at RM4,600 per tonne and resistance at RM4,750 per tonne, according to David Ng, a trader at Iceberg X.
