Strong exports continued to buoy Malaysian palm oil futures on Wednesday, offsetting a moderation in crude oil and rival soybean oil prices.
The Bursa Malaysia Derivatives' September crude palm oil contract rose by a further 0.32% to 4,667 Malaysian ringgit ($1,139.68) per metric ton in midday trade. The October contract inched up 0.47% to 4,718 ringgit/mt.
Cargo surveyors reportedly estimated Malaysian shipments in July to have risen between 12.1% and 19.5% from a month earlier. A Reuters survey also showed a 14.8% growth.
This followed a 5.7% month-over-month increase in exports in June, according to Malaysian Palm Oil Board data. The agency is set to release the official July industry data on Aug. 10.
Indonesian exports of crude and refined palm oil have also remained robust in H1, with statistics bureau data showing a year-over-year growth to 11.3 million metric tons from the 2025 level of 11.0 mmt.
For July alone, however, shipments have dropped to 2.4 mmt from the prior year's 2.7 mmt, following the implementation of a higher 50% biodiesel blend.
In top buyer India, palm oil imports in July have surged 50% from a month earlier to 733,000 metric tons, according to dealers cited by Reuters, as buyers stock up ahead of festivities. Soybean imports also grew 32% to 501,000 mt, bringing edible oil imports to their highest level in 10 months.
"...external demand performed well, which was favorable for the destocking of palm oil from production areas and supported spot prices," market intelligence provider SunSirs said.
Strong export demand, if sustained in the coming months, along with lower production following the peak season, could facilitate a drawdown in inventories. A Reuters survey indicated that Malaysian domestic stocks reached their five-month high in July, as levels rose 7.4% month over month.
Going forward, resilient demand could support palm oil futures, according to SunSirs.
El-Nino related supply risks are also expected to underpin prices, price reporting agency MySteel said.