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Palm Oil

Palm Oil Holds Gains Around MYR 5,000

Malaysian palm oil futures extended their upward momentum, hovering around MYR?5,000 per tonne as a weaker ringgit and stronger edible oil prices in Dalian and Chicago lent support. Crude oil’s rally, driven by fears of prolonged Middle East conflict and supply risks, added further momentum. At the same time, an unusually severe El?Niño has deepened dry conditions across Southeast Asia, sparking fires and haze in Borneo and Sumatra, with more than 202,000 hectares reportedly burned, heightening concerns over crop yields. Yet gains were tempered by sluggish exports, with cargo surveyors estimating August shipments fell between 6.5% and 14.9% from July, while inventories climbed to a five-month high. In India, heavy vegetable-oil buying has congested major ports, delaying vessel unloading by up to 10 days as storage tanks overflow and refiners struggle to clear cargo, a bottleneck that could dampen near-term import demand.

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