Palm Oil Climbs to Highest Level Since April

Malaysian palm oil futures surged over 2% to around MYR 4,820 per tonne, marking their highest level since early April and rebounding from recent weakness. Firmer edible oils on the Dalian exchange lifted sentiment, while bargain hunting added support. Demand prospects improved as India's edible oil imports hit a 10-month high in July, with refiners replenishing palm oil and soyoil stocks ahead of the festival season. However, gains were capped by a stronger ringgit and weaker soyoil futures in Chicago markets. Meanwhile, elevated inventories remained a drag, with Malaysia’s July palm oil stocks climbing to a five-month high as production outpaced exports. Simultaneously, export prospects softened, with Intertek estimating shipments fell 7.9% in August 1–15 from the same period in July. Traders also turned cautious ahead of China’s July activity data, including retail sales and industrial output, which could provide fresh clues on demand in another key market.

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.