FX.co ★ Palm Oil Starts Week Higher

Malaysian palm oil futures have risen to over MYR 4,400 per tonne, reversing recent declines, as demand from India is anticipated to be robust ahead of the festive season in October. An industry analyst has forecasted that India's edible oil imports will increase by 4.6%, reaching a record 17.1 million tonnes for the 2025/26 period, primarily driven by higher palm oil purchases. In Indonesia, the largest global producer of palm oil, exports to the European Union are expected to rise next year. This boost is facilitated by a bilateral trade agreement and the EU’s second postponement of its anti-deforestation legislation. Nevertheless, additional price increases are being curbed due to a stronger ringgit and weaker competitor oils on the Dalian and Chicago exchanges. Concurrently, oil prices have decreased due to an abundance of supply in the market, further affecting the broader energy sector. Some market participants remain cautious, as they await September export figures from cargo surveyors, expected soon. Additionally, Malaysian palm oil production is projected to reach its peak in September and October, thanks to favorable weather conditions.