FX.co ★ Palm Oil Flat After Monthly Data

Malaysian palm oil futures remained relatively stable, hovering near MYR 4,250 per tonne, following slight gains in the previous session. This stability comes as traders evaluated the latest monthly data from the Malaysian Palm Oil Board (MPOB). In July, inventories increased by 4.02% from the previous month, reaching 2.11 million metric tons, marking the highest level in almost two years. Additionally, crude palm oil production rose by 7.09% to 1.81 million tons, the highest since September 2024. Meanwhile, exports saw a recovery, climbing by 3.82% to 1.31 million tons in July after a significant decline in June. In a separate report, cargo surveyor Intertek Testing Services noted that shipments from August 1 to 10 rose sharply by 23.3% to 482,576 metric tons. Outside of industry-specific data, investors monitored the approaching August 12 deadline for China to finalize a lasting tariff agreement with the U.S. In Indonesia, the demand for biodiesel remained robust, supported by a 50% blending mandate. In India, the world's largest palm oil consumer, early purchases are anticipated in August and September in preparation for the Diwali festivals in mid-October.