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Palm Oil

Palm Oil Dips Ahead of MPOB Data

Malaysian palm oil futures slipped more than 1% to around MYR 4,900 per tonne, extending their decline to a one-week low. Weaker edible oil prices in Dalian and Chicago, along with a stronger ringgit, weighed on sentiment. Traders also turned cautious ahead of monthly data from the Malaysian Palm Oil Board later today. Meanwhile, exports remained sluggish, with cargo surveyors estimating August palm oil shipments fell between 6.5% and 14.9% from July. In India, heavy vegetable oil buying has congested major ports, delaying vessel unloading by up to 10 days as storage tanks overflow, potentially dampening near-term import demand. Still, losses were tempered by firm crude oil prices after Brent breached US$100 a barrel amid renewed Middle East tensions, boosting the appeal of palm oil as a biodiesel feedstock. Simultaneously, unusually dry weather across Southeast Asia fueled concerns over palm yields following fires and haze in Borneo and Sumatra.

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