Malaysian palm oil futures extended gains, trading above MYR 4,740 per tonne and reaching their highest level in more than two weeks. Prices were supported by a weaker ringgit, which improved export competitiveness, and by stronger palm olein prices on the Dalian exchange. The bullish tone was further underpinned by export estimates, with cargo surveyors reporting that Malaysian palm oil shipments rose between 2.6% and 14.8% in the first 10 days of August.
Demand prospects in India, the world’s largest consumer, also brightened. The country’s edible oil imports in July climbed to a 10-month high, as refiners increased purchases of palm oil and soyoil ahead of the festive season.
Upside, however, was limited by indications of ample supply. Malaysia’s palm oil inventories in July grew 3.32% month-on-month to 2.63 million tonnes, while production surged 9.41% to 1.79 million tonnes. At the same time, in China, another major buyer, both consumer and producer price inflation eased in July, highlighting subdued domestic demand that could temper further gains in palm oil prices.
