FX.co ★ Palm Oil Starts Week on Firm Footing

Malaysian palm oil futures experienced an increase of nearly 1%, trading above MYR 4,450 per tonne and breaking a two-session losing streak. This rise was bolstered by a softer ringgit and stronger soybean oil prices on the Dalian Commodity Exchange. Additionally, firm crude oil prices, driven by ongoing geopolitical tensions in Europe and the Middle East, contributed to the upward trend. On the demand front, cargo surveyor Intertek Testing Services reported an 8.7% increase in Malaysian palm oil exports from September 1–20 compared to the previous month, as purchases from India, the largest buyer, are expected to remain robust ahead of the mid-October festive season. Indian imports could exceed 800,000 tonnes in September, following a 13-month high of 990,528 tonnes in August. In parallel, the Malaysian Palm Oil Board has set the October reference price for crude palm oil at a level that maintains the export duty at 10%. However, the potential for further gains is limited due to indications of peak output in September–October, attributable to favorable weather conditions, alongside a 4.2% increase in end-August stockpiles from July, bringing the total to 2.2 million tonnes.