Malaysian palm oil futures edged higher, trading near MYR 4,670 per tonne after a sharp recent rally. Prices were underpinned by strength in related edible oils on the Dalian and Chicago exchanges and by robust Indian demand, with refiners reportedly purchasing about 150,000 tonnes over three days amid tight sunflower oil supplies ahead of November’s festive season.
Market participants were also awaiting Malaysia’s 2027 federal budget for potential sector-specific measures, as well as monthly data from the Malaysian Palm Oil Board to gauge the market’s next direction.
Upside was limited by a stronger ringgit, which makes exports less competitive, and by softer crude oil prices after U.S. President Trump indicated Washington would not launch an attack on Iran ahead of next month’s U.S. elections.
At the same time, Reuters projected that palm oil inventories would climb to a record high in September, surpassing the 2018 peak, as rising production continued to outpace sluggish exports. Cargo surveyors estimated that shipments fell by 17.1%–28.8% month-on-month, highlighting weak demand.
Despite these headwinds, palm oil futures were still on course for a weekly gain of nearly 3% so far, reversing the declines seen in the previous two weeks.
