Malaysian palm oil futures extended their rally, trading around MYR 4,725 per tonne and on track for a second straight weekly gain. Prices were buoyed by strength in edible oils on the Dalian exchange and improving export prospects. Cargo surveyors reported that Malaysia’s palm oil shipments rose by between 2.6% and 14.8% in the first ten days of August compared with the same period in July.
Demand outlook improved further after edible oil imports by top buyer India reached a 10‑month high in July. According to the Solvent Extractors’ Association of India, refiners there stepped up purchases of palm oil and soyoil to rebuild stocks ahead of the festival season. Higher crude oil prices also underpinned sentiment amid U.S. threats to maintain a naval blockade of Iran.
Upside, however, was limited by a stronger ringgit and weaker soyoil prices on the Chicago exchange. At the same time, Malaysia reduced its September crude palm oil reference price, but the cut was not enough to lower the export duty below 10%.
