Palm Oil Set for Second Straight Weekly Rise

Malaysian palm oil futures extended gains, hovering around MYR 4,725 per tonne and heading for a second consecutive weekly advance, supported by firmer edible oils on the Dalian markets and improving export prospects. Cargo surveyors estimated Malaysian palm oil shipments rose between 2.6% and 14.8% in the first 10 days of August from the same period in July. Demand prospects also strengthened after edible oil imports in top buyer India climbed to a 10-month high in July, as refiners increased purchases of palm oil and soyoil to replenish inventories ahead of the festival season, according to the Solvent Extractors’ Association of India. Higher oil prices also lent support amid U.S. threats to maintain a naval blockade of Iran. However, gains were capped by a stronger ringgit and weaker soyoils on the Chicago exchange. Meanwhile, Malaysia lowered its September crude palm oil reference price, although the adjustment was insufficient to bring the export duty below 10%.

Malaysian palm oil futures slipped further, staying below MYR 4,700 per tonne and hovering near a one-week low amid weakness in edible oils on the Dalian and Chicago exchanges. Signs of ample supply continued to weigh on sentiment, with Malaysia’s July palm oil inventories rising 3.32% mom, while production surged 9.41%. Lower crude oil prices also pressured edible oils after forecasts pointed to softer global oil demand in 2026. Meanwhile, Malaysia lowered its September crude palm oil reference price, but the adjustment was not enough to push the export duty below 10%. Still, a weaker ringgit helped cushion the downside by making palm oil more affordable for overseas buyers. Export prospects also improved, with cargo surveyors estimating Malaysian palm oil shipments rose between 2.6% and 14.8% in the first 10 days of August. In top buyer India, expectations of stronger festive-season demand provided additional support after July edible oil imports climbed to a ten-month high.

Malaysian palm oil futures eased, slipping below MYR 4,720 per tonne as profit-taking set in after a two-week high. Losses tracked declines in edible oils on the Dalian exchange and were compounded by signs of ample supply: July inventories rose 3.32% to 2.63 million tonnes, while output surged 9.41% to 1.79 million tonnes. Softer Chinese inflation data underscored weak demand in the world’s top edible oil importer, further weighing on sentiment. Still, downside was cushioned by a weaker ringgit and firmer soyoil prices on the Chicago exchange. In top buyer India, festive-season demand expectations lent support after July imports hit a ten-month peak. Export prospects brightened as cargo surveyors estimated shipments rose between 2.6% and 14.8% in the first ten days of August. Meanwhile, stronger crude oil prices added a tailwind, with Middle East supply concerns, heightened by attacks on two ships and uncertainty over a U.S.–Iran peace deal, bolstering the broader commodity complex.