Palm Oil Gains Despite Weak Export Momentum

Malaysian palm oil futures climbed above MYR 4,850 per tonne, rebounding from recent losses as a weaker ringgit boosted competitiveness and firmer edible oils on the Dalian exchange lent support. Bargain buying also emerged after prices touched a one-week low. Weather risks added to sentiment, with signs of a developing El Niño raising concerns over potential dryness and output cuts in Indonesia and Malaysia. Meanwhile, Indonesia’s B50 biodiesel mandate is slated for full implementation on October 1, reinforcing expectations of stronger domestic consumption and tighter export supply. Still, gains were capped by softer soybean oil prices on the Chicago exchange and a further retreat in crude oil. On the demand side, cargo surveyors estimated Malaysian palm oil product exports for August 1–25 fell 11.4%–20% from the same period in July, underscoring sluggish momentum. Ample supply also weighed, with Malaysian inventories rising to a five-month high in July.



