FX.co ★ Palm Oil Hits Over 4-Month High on Strong Exports and Demand Outlook

Malaysian palm oil futures experienced a rise of approximately 1%, surpassing MYR 4,400 per tonne, marking the third consecutive session of gains and reaching the highest point since early April. This upward movement was fueled by stronger edible oil prices on the Dalian commodity exchange and an improvement in global sentiment following an agreement between the U.S. and China to extend a moratorium on increased tariffs. The rise in exports contributed additional support, with shipments from August 1 to August 10 increasing by 23.3% to 23.7%, according to cargo surveyors. Additionally, India, which is the largest consumer of palm oil globally, may increase its purchases in August and September in preparation for the Diwali festival in mid-October. In Indonesia, a leading producer, the government in Jakarta reaffirmed its plans to boost the mandatory palm oil content in biodiesel to 50% by next year, up from the current 40%, although the initiative is not expected to commence in January. Meanwhile, further gains were tempered by industry data revealing that inventories in July rose by 4.02% from June to 2.11 million metric tons, marking the highest level in nearly two years, while crude palm oil production increased by 7.09% to 1.81 million tons, the highest since September 2024.