Palm Oil Rebounds on Dalian Gains, El Niño Risks

Malaysian palm oil futures strengthened, trading near MYR 4,990 per tonne after recent losses, lifted by firmer edible oil prices on the Dalian market. Sentiment was also supported by rising El Niño risks, which could bring drier conditions to Southeast Asia. Palm oil output in top supplier Indonesia is expected to fall 2.9% to 56.8 million tonnes in 2027. Indonesia will also maintain its B50 biodiesel mandate next year, with implementation reportedly reaching 80% so far. In India, refiners imported a record volume of soyoil in August and the most palm oil in six months, ahead of the festive season, providing additional demand support. However, gains were capped by a stronger ringgit and weaker crude oil prices. Export prospects also remained weak, with cargo surveyors estimating Malaysian palm oil shipments fell between 6.5% and 14.9% in August from July. Meanwhile, ample supply remained a headwind, with Malaysian palm oil inventories rising to a five-month high in July.



