Malaysian palm oil futures rose above MYR 4,850 per tonne, rebounding from recent losses as a weaker ringgit improved export competitiveness and firmer edible oil prices on the Dalian exchange provided additional support. Buying interest also returned on dips after futures touched a one-week low.
Weather-related risks further underpinned sentiment, with signs of a developing El Niño stoking concerns about potential dryness and reduced output in Indonesia and Malaysia. At the same time, the planned full implementation of the B50 biodiesel mandate in Indonesia, the world’s largest supplier, on October 1 strengthened expectations of higher domestic consumption and tighter export availability.
Upside momentum, however, was restrained by weaker soybean oil prices on the Chicago exchange and another pullback in crude oil. On the demand front, cargo surveyor estimates showed Malaysian palm oil product exports for August 1–25 falling by 11.4%–20% from the same period in July, highlighting subdued demand. Ample supply conditions also exerted pressure, with Malaysian inventories climbing to a five-month high in July.
