FX.co ★ Palm Oil Set to Post Second Straight Weekly Gains

Malaysian palm oil futures have increased, maintaining a level above MYR 4,400 per tonne and recovering from the previous session's decline. This rise is attributed to a weakened ringgit and Malaysia's decision to elevate the crude palm oil reference price for September, which subsequently raised the export duty to 10%. Week-on-week, contracts are headed for a second consecutive weekly increase, having risen over 3.5% to date. This growth is supported by robust export demand, as cargo surveyors reported a more than 23% increase in shipments during the first ten days of August compared to the previous month. Nevertheless, lower edible oil prices on the Dalian and Chicago exchanges have limited further advances. In India, the largest consumer, palm oil imports in July dropped by 10.5% from June, totaling 855,695 metric tons, according to the Solvent Extractors’ Association. This decline follows a significant rise in import duties on crude palm oil and refined palm olein from 8.25% to 19.25%. Concurrently, new data from China, another major purchaser, indicates a slowdown in economic activity in July, hindered by trade barriers, reduced domestic demand, and weather-related disruptions.