FX.co ★ Palm Oil Wraps Up Week on Subdued Tone

Malaysian palm oil futures experienced a slight uptick, nearing MYR 4,450 per tonne, effectively reversing the losses incurred in the prior trading session. This growth was bolstered by a weakened ringgit and incremental gains in competing soyoil in the Dalian and Chicago markets. Concurrently, the Malaysian Palm Oil Board confirmed that the October reference price for crude palm oil would sustain the export duty at 10%. On the demand front, purchases by India, the largest consumer, are anticipated to stay robust leading into the mid-October festive period. Notably, in August, India's imports of palm oil surged by 15.8% to 990,528 tonnes, marking the highest level in over a year, as refiners took advantage of more favorable pricing compared to soyoil. An industry body in India has predicted imports to exceed 800,000 tonnes for the current month. Regarding exports, Intertek Testing Services, a cargo surveyor, observed a 2.6% increase in Malaysian palm oil shipments during the first half of September, whereas AmSpec Agri Malaysia reported a marginal dip of 0.1%. For the week, contract activities showed minimal fluctuations, remaining muted amidst the recent holiday season.