Malaysian palm oil futures fell about 2% to below MYR 4,700 per tonne, extending last week’s losses to a six-week low. Sentiment was pressured by a stronger ringgit and weaker soybean oil prices on the Chicago Board of Trade. A retreat in crude oil after recent gains added to the downside, amid expectations that the Strait of Hormuz could reopen and that U.S. restrictions on Iranian exports might ease.
Additional headwinds came from rising Malaysian inventories and subdued demand from India, the world’s largest vegetable-oil importer, even as industry officials noted that the anticipated impact of El Niño has yet to materialize. Losses were partly limited by India’s decision to cut import duties on crude and refined vegetable oils ahead of the September–November festive season, a move aimed at containing food inflation.
On the supply side, Indonesia may experience a shorter-than-usual wet season from November, which could affect crop conditions. For the week, palm oil futures are down roughly 4.6%, reversing the previous week’s gains in a sharp turnaround.
