Palm Oil Prices Reverse as Soy Oil Crashes – First Weekly Gain Still Possible
Palm Oil Prices Reverse as Soy Oil Crashes – First Weekly Gain Still Possible
After four days of gains, palm oil futures fell sharply on Thursday as soy oil and crude oil collapsed. However, strong export demand keeps weekly gains within reach.
Strategy:– Support zone: 760–770 EUR/t (Jul 25)– Re-enter long positions if soy oil rebounds or exports confirm strength– Watch Friday close for weekly direction
After four days of gains, palm oil futures fell sharply on Thursday as soy oil and crude oil collapsed. However, strong export demand keeps weekly gains within reach.
📊 Market Situation & Price Development (in EUR/t)
The July 2025 contract on MDEX dropped by 22 MYR to 3,846 MYR/t, equivalent to 769.20 EUR/t, based on a conversion rate of 5.00 MYR = 1.00 EUR.🌍 Key Market Drivers
- Soy Oil Leads the Sell-OffAfter rumours of a weaker U.S. biodiesel mandate, soy oil fell over 5%, dragging palm oil with it.
- Crude Oil CollapseRising U.S. inventories and renewed Iran deal talks pressured crude, which spilt into edible oils.
- Export Flows Still SupportiveIndian and Pakistani buying interest remains firm, driven by the attractive soyoil–palm oil price spread, now over 100 USD/t.
- Technical CorrectionAfter four days of recovery, Thursday's loss appears to be a natural pause before further direction is determined.
💼 Trading Strategy & Market Outlook
Palm oil remains in a corrective consolidation. With stable export flows, the downside may be limited.Strategy:– Support zone: 760–770 EUR/t (Jul 25)– Re-enter long positions if soy oil rebounds or exports confirm strength– Watch Friday close for weekly direction