Palm Oil Rises on Export Strength, Firmer Edible Oils

Malaysian palm oil futures were notably higher, trading near MYR 4,720 per tonne and snapping recent losses, as firmer edible oil prices in Dalian and Chicago supported sentiment. Strong export demand added momentum, with a monthly report from the Malaysian Palm Oil Board showing July shipments up 14.5% from June to 1.39 million tonnes. Demand prospects in top buyer India also improved, as edible oil imports hit a 10-month high in July, with refiners stocking up on palm oil and soyoil ahead of the festive season. However, a stronger ringgit capped the gain. Meantime, Malaysia’s palm oil stocks rose 3.32% mom to 2.63 million tonnes in July, while production grew 9.41% to 1.79 million tonnes, highlighting ample near-term supply. In China, a key palm oil consumer, both CPI and PPI inflation eased in July, underscoring persistently weak domestic demand. Traders now await export estimates for August 1-10 from cargo surveyors after July shipments rose 12.1%-19.5% from June.

Malaysian palm oil futures hovered below MYR 4,700 per tonne, extending recent declines as weakness in Dalian palm olein and Chicago soyoil weighed on sentiment. Traders also grew cautious ahead of next week’s monthly report from the Malaysian Palm Oil Board, while Reuters survey pointed to July inventories at a five-month high as seasonal output outpaced demand. Even so, palm oil was still tracking a modest weekly advance of about 0.5% so far, recovering from prior losses. Demand prospects in top buyer India offered support, with July imports surging to a 10-month high as refiners stocked up on palm oil and soyoil ahead of festive demand amid tightening domestic supplies. Exports also underpinned prices, with cargo surveyors estimating July Malaysian palm oil shipments rose between 12.1% and 19.5% from June. In China, another major consumer, July trade data showed resilient exports and imports despite moderating growth, reinforcing a broadly supportive backdrop for commodity demand.

Malaysian palm oil futures slipped below MYR 4,700 per tonne, reversing recent gains as a stronger ringgit and weaker Chicago soyoil prices dampened sentiment. Meanwhile, crude oil prices retreated, further weighing on palm oil as lower energy prices reduce biodiesel demand prospects. Market pressure also stemmed from Reuters forecasts that Malaysia’s palm oil inventories climbed to a five-month high in July, reflecting seasonally stronger output. Traders stayed cautious ahead of China’s July trade data, which may offer fresh demand signals from a major palm oil consumer. Still, losses were tempered by firmer edible oil prices on the Dalian exchange and solid export momentum. Cargo surveyors estimated Malaysia’s July palm oil shipments rose 12.1%–19.5% from June. In top buyer India, edible oil imports hit a 10-month peak in July as refiners stepped up palm oil and soyoil purchases to rebuild stocks before the festive season amid tightening domestic supplies.