FX.co ★ Palm Oil Rises on Export Strength, Firmer Edible Oils

Malaysian palm oil futures advanced sharply, trading around MYR 4,720 per tonne and breaking a recent losing streak, supported by stronger edible oil prices in both Dalian and Chicago. Sentiment was further lifted by robust export demand: a monthly report from the Malaysian Palm Oil Board showed July shipments rising 14.5% from June to 1.39 million tonnes. Demand prospects in top buyer India also improved, with edible oil imports hitting a 10-month high in July as refiners increased purchases of palm oil and soyoil ahead of the festive season. Gains were partially limited, however, by a firmer ringgit.

On the supply side, Malaysia’s palm oil inventories climbed 3.32% month-on-month to 2.63 million tonnes in July, while production expanded 9.41% to 1.79 million tonnes, pointing to ample near-term supply. In China, a major palm oil consumer, both CPI and PPI inflation eased in July, underscoring persistently weak domestic demand. Traders are now awaiting export estimates for August 1–10 from cargo surveyors, after July shipments recorded a 12.1%–19.5% increase from June.