FX.co ★ Palm Oil Holds Gains Around MYR 5,000

Malaysian palm oil futures extended their rally, trading near MYR 5,000 per tonne, supported by a weaker ringgit and firmer edible oil prices in both Dalian and Chicago. The surge in crude oil, fueled by concerns over a prolonged conflict in the Middle East and mounting supply risks, provided an additional boost. At the same time, an unusually strong El Niño has intensified dry conditions across Southeast Asia, triggering fires and haze in Borneo and Sumatra; more than 202,000 hectares are reported to have burned, raising worries about palm oil crop yields. However, upside momentum has been capped by weak export demand: cargo surveyors estimate that August shipments fell between 6.5% and 14.9% from July, while inventories rose to a five-month high. In India, aggressive buying of vegetable oils has congested key ports, delaying vessel unloading by up to 10 days as storage tanks reach capacity and refiners struggle to clear cargoes—a bottleneck that could weigh on import demand in the near term.