FX.co ★ Palm Oil Hits Over 4-Month High Above MYR 4,800

Malaysian palm oil futures extended their recent rally, trading above MYR 4,800 per tonne and marking their highest level since early April. Sentiment was buoyed by stronger prices for edible oils on the Dalian and Chicago exchanges, while firmer crude oil prices added further support as the likelihood of a deal to end the Middle East conflict appeared increasingly remote. Gains were capped, however, by a stronger ringgit. Elevated inventories also posed a constraint, with Malaysia’s palm oil stocks climbing to a five-month high in July as output continued to outstrip exports. In key consumer market India, record soyoil imports projected for August could dampen demand for palm oil, as attractive pricing prompts refiners to opt for the cheaper substitute ahead of the festive season. Export indicators were mixed: Intertek Testing Services estimated Malaysian palm oil product shipments fell 7.9% in August 1–15 from the previous month, while AmSpec Agri Malaysia reported a 3.2% increase over the same period.