Palm Oil Up Toward MYR 4,500 Ahead of Wednesday Break

Malaysian palm oil futures fell around 1.3% to MYR 4,900 per tonne, extending their recent drop to a one-week low. Sentiment was pressured after Malaysian Palm Oil Board data showed inventories rose 7.48% mom in August to an eight-month high of 2.82 million tonnes. Meanwhile, exports fell 7.5% to 1.29 million tonnes, with production adding 1.39% to 1.82 million tonnes, reinforcing concerns over ample supply. Risk appetite was further weighed by weaker edible oil prices in Dalian and Chicago and a stronger ringgit. In India, heavy edible oil buying has congested major ports, delaying vessel unloading by up to 10 days as storage tanks overflow, potentially curbing near-term import demand. Still, losses were capped by elevated crude oil prices, with Brent breaching US$100 a barrel amid renewed Middle East tensions, boosting palm oil’s appeal as a biodiesel feedstock. Dry weather across Southeast Asia also fueled concerns over yields following fires and haze in Borneo and Sumatra.

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.

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.