FX.co ★ Palm Oil Firms After Steep Fall, Hovering Around MYR 4,250

Malaysian palm oil futures experienced a modest increase, reaching approximately MYR 4,250 per tonne. This minor recovery follows a notable 2.0% decline in the previous session, spurred by stronger Dalian palm olein prices boosting market sentiment. The Malaysian Palm Oil Council anticipates firm prices throughout August, bolstered by festive demand from India—the largest global consumer of palm oil—and high U.S. soybean oil prices. The positive trend is expected to persist into the third quarter, driven by restocking activities in anticipation of India's Diwali festival in mid-October, with import projections around 2.9 million tonnes for this period. Additionally, Malaysia adjusted its August reference price, increasing the export duty to 9% from the previous 8.5% in July. However, these gains were tempered by a stronger ringgit and falling crude oil prices amid worldwide demand concerns. Furthermore, export challenges continue, with cargo surveyors predicting a 3.5% to 7.3% decline in palm oil shipments from July 1–20 compared to the previous month.