Malaysian palm oil futures firmed, trading near MYR 4,790 per tonne after recent declines, supported by a weaker ringgit, stronger edible oil prices on the Dalian exchange, and India’s move to cut basic import duties on crude and refined vegetable oils ahead of the September–November festive season to rein in domestic food inflation.
Supply concerns also underpinned prices, as top producer Indonesia is expected to see a shorter-than-normal wet season from November, which could adversely affect yields. However, gains were capped by expectations of rising Malaysian inventories: one brokerage projected end-September stocks at around 3 million tonnes, or slightly higher, on the back of a double-digit increase in production, particularly in Sabah.
Exports remained subdued, with cargo surveyors reporting that shipments fell by 12.8% to 24.7% month-on-month during September 1–20. In addition, softer crude oil prices, driven by improving supply conditions in the Gulf, further weighed on sentiment in the palm oil market.
