FX.co ★ Palm Oil Extends Gains

Malaysian palm oil futures surged close to 1%, exceeding MYR 4,400 per tonne, marking a second day of advancement supported by a weaker ringgit and robust performances of competing edible oils on the Dalian and Chicago exchanges. Export activities also gained traction, as cargo surveyors noted an 8.3%–8.7% increase in shipments during the first 20 days of September compared to the same timeframe in August. Demand from India, the largest buyer, is anticipated to remain strong ahead of the October festive season. In Indonesia, the top global producer of palm oil, exports to the European Union are expected to increase in 2026, facilitated by a bilateral trade agreement and the EU's decision to postpone its anti-deforestation legislation for the second time. Nonetheless, additional price increases were tempered by forecasts of peak production in September and October due to favorable weather conditions. On the inventory front, Malaysian stockpiles rose by 4.2% from the previous month, reaching 2.2 million tonnes at the end of August, while Indonesian reserves edged up 1.5% to 2.57 million tonnes by the end of July.