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Palm Oil

Palm Oil Weighed by Weak Exports, India Bottleneck

Malaysian palm oil futures remained subdued, trading near MYR 4,960 per tonne, pressured by a stronger ringgit and weaker edible oil prices in the Dalian and Chicago markets. Meanwhile, exports remained sluggish, with cargo surveyors estimating August palm oil shipments fell between 6.5% and 14.9% from July, while inventories climbed to a five-month high in July. In India, heavy vegetable-oil buying congested major ports, delaying vessel unloading by up to 10 days as storage tanks overflow, potentially dampening near-term import demand. In top supplier Indonesia, new technical regulations tightened central government control over key export commodities, including palm oil, under President Prabowo Subianto’s plan to boost state earnings from natural resources. Still, losses were cushioned by firmer crude oil amid renewed Middle East tensions. Meanwhile, unusually dry conditions across Southeast Asia raised concerns over yields after triggering fires and haze in Borneo and Sumatra.

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