Malaysian palm oil futures firmed, stabilizing above MYR 4,850 per tonne and breaking a recent losing streak. The market drew support from stronger soyoil prices on the Chicago Board of Trade and higher crude oil prices, amid ongoing geopolitical tensions in the Middle East.
Expectations of tighter global supply further underpinned prices. Indonesia’s B50 biodiesel mandate is set to channel more palm oil into domestic consumption, while El Niño-related weather risks could constrain production in both Indonesia and Malaysia.
Demand prospects also improved. Palm oil imports by India, the world’s largest buyer, increased 7% from July to 782,761 tonnes in August, the highest level since February, as refiners replenished inventories ahead of the festival season.
On the policy front, Malaysia raised its crude palm oil reference price for October but maintained the export duty at 10%.
However, upside momentum was limited by weakness on the Dalian exchanges and evidence of softer export demand. Cargo surveyor data showed that Malaysian palm oil product shipments declined by an estimated 12.8%–24.7% month-on-month during September 1–20.
