Palm oil prices are under pressure due to a lack of purchasing from importing nations and weakness in Chicago soybean oil futures, fueling market expectations of a significant rise in Malaysian inventories by the end of August.

Multiple bearish factors are currently weighing on palm oil prices: on the demand side, sluggish buying from importing nations leaves demand unsupported; weakness in the related Chicago soybean oil market is dragging down the entire vegetable oil sector; and market expectations of a substantial increase in Malaysian palm oil stocks by the end of August—reinforcing the outlook for ample supply—are exerting clear downward pressure on spot prices.

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