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Palm Oil

Palm Oil Heads for First Weekly Loss in Four Weeks

Malaysian palm oil futures hovered near MYR 4,850 per tonne, rebounding from recent declines as firmer rival edible oils on Dalian and Chicago exchanges lifted sentiment. Elevated crude oil prices and mounting El Niño risks, which stoked concerns over dryness and weaker output across Southeast Asia, added support. Indonesia’s planned full rollout of its B50 mandate on October 1 is also expected to bolster domestic consumption and trim exportable supplies. However, futures were headed for their first weekly loss after three straight gains, down about 3.3% so far. Broader weakness reflected softer demand and ample supply, with cargo surveyors noting palm oil exports for August 1–25 fell between 11.4%–20% from July. Meanwhile, inventories hit a five-month high in July, intensifying supply pressure. Demand from India may face further headwinds as refiners turn to cheaper soyoil, with imports in August projected to be strong, underscoring shifting preferences in the world’s largest buyer.

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