The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange experienced a slight decline of 0.18%, reaching 3,919 ringgit ($819.53) per metric ton by midday break.

Due to destinations limiting palm imports due to high prices, palm oil is starting to compete with alternative oils in terms of pricing, anticipating a return to normal seasonal production levels, according to Pranav Bajoria, director at Comglobal Pte Ltd, a brokerage based in Singapore. In contrast, Dalian's most-active soy oil contract saw a slight increase of 0.16%, while its palm oil contract dropped by 0.97%. Soy oil prices on the Chicago Board of Trade rose by 0.18%.

Palm oil's pricing dynamics are influenced by movements in related oils as they compete for market share in the global vegetable oils market.

The decline in oil prices can be attributed to a renewed focus on market fundamentals, with Israel and Iran downplaying the likelihood of an escalation of hostilities in the Middle East following Israel's relatively minor strike on Iran.