FX.co ★ Palm Oil Retreats to Start the Week

Malaysian palm oil futures experienced a decline of approximately 1%, settling below MYR 4,280 per tonne. This dip follows a 2.5% surge in the prior session and is largely attributed to traders capitalizing on profits after futures reached their highest levels in nearly four months. Additional downward pressure stemmed from weakened soyoil prices on both the Chicago Board of Trade and the Dalian exchange, alongside a marginally stronger ringgit, which renders palm oil pricier for international buyers. On the export side, the outlook dimmed as cargo surveyor Intertek Testing Services reported a 3.5% drop in Malaysian palm oil product exports from July 1–20 compared to the same timeframe last month. Concerns over short-term demand were exacerbated by substantial stockpiles in major importing nations like India and China. Nevertheless, the downturn was somewhat mitigated by Malaysia's decision to increase its August crude palm oil reference price, indicative of the recent market vigor. Consequently, the export duty has been adjusted to 9%, up from 8.5% in July.