Malaysian palm oil futures fell more than 1% to around MYR 4,900 per tonne, extending losses to a one-week low. Sentiment was pressured by weaker edible oil prices on the Dalian and Chicago exchanges and by a stronger ringgit. Traders also adopted a cautious stance ahead of the Malaysian Palm Oil Board’s monthly data release later today.
On the export front, demand remained subdued, with cargo surveyors estimating that August palm oil shipments declined between 6.5% and 14.9% from July. In India, heavy buying of vegetable oils has congested major ports, delaying vessel unloading by up to 10 days as storage tanks reach capacity, a situation that could curb near-term import demand.
Even so, downside pressure was partially offset by firm crude oil prices, after Brent crude rose above US$100 per barrel amid renewed tensions in the Middle East, enhancing the appeal of palm oil as a biodiesel feedstock. At the same time, unusually dry weather across Southeast Asia has raised concerns about palm oil yields, following recent fires and haze in Borneo and Sumatra.
