FX.co ★ Palm Oil Retreats Following Previous Rally

Malaysian palm oil futures experienced a decline of nearly 1%, slipping below MYR 4,450 per tonne, as traders opted to secure profits following a noteworthy increase of over 2% in the preceding session. This shift in sentiment was compounded by apprehensions regarding a seasonal uptick in production. Specifically, July's output rose by 7.1% compared to the previous month, reaching 1.81 million tonnes. Despite these factors, further declines were tempered by a weaker ringgit. Simultaneously, India's purchases, as a major buyer, surged by 16% from the previous month, reaching 993,000 tonnes—the highest level observed since July 2024—as refiners intensified acquisitions ahead of the mid-October festive period, according to market dealers. Regarding exports, cargo surveyors estimated an increase of Malaysian palm oil product shipments in August, ranging between 10.2% and 15.4% compared to July. In parallel, Indonesia, the leading global producer, recorded an 11% year-on-year rise in exports of crude and refined palm oil over the first seven months of 2025, totaling 13.64 million tonnes, underscoring strong global demand.