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Palm Oil

Palm Oil Hovers at 20-Week High

Malaysian palm oil futures rose further, trading near MYR 4,900 per tonne and reaching their highest level since early April. Support came from firmer edible oils in Dalian and Chicago markets, alongside stronger crude oil prices amid continued uncertainty over shipping through the Strait of Hormuz and potential disruptions to global trade flows. Meanwhile, the Malaysian Palm Oil Council projected prices to stay firm above MYR 4,600 in September, citing tightening supply and trade disruptions. However, upside momentum was tempered by elevated inventories, with July stocks climbing to a five-month high. In India, record soyoil imports expected in August could dent palm oil demand, as refiners may favor cheaper soyoil ahead of festive-season consumption. Export signals were mixed: Intertek reported shipments down 7.9% during August 1–15 from the same period in July, while AmSpec estimated a 3.2% rise, leaving traders cautious on near-term direction.

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