FX.co ★ Palm Oil Climbs to Highest Level Since April

Malaysian palm oil futures jumped more than 2% to around MYR 4,820 per tonne, their highest level since early April, rebounding from recent declines. Sentiment was buoyed by stronger edible oil prices on the Dalian exchange, while bargain hunting provided additional support.

Demand prospects improved after India’s edible oil imports rose to a 10‑month high in July, as refiners replenished palm oil and soyoil inventories ahead of the festival season. However, further gains were limited by a stronger ringgit and weaker soyoil futures on the Chicago Board of Trade.

On the supply side, elevated stock levels continued to weigh on the market. Malaysia’s palm oil inventories in July climbed to a five‑month high, with production exceeding exports. At the same time, export momentum appeared to soften, with Intertek estimating that shipments in August 1–15 were down 7.9% from the same period in July.

Traders also adopted a more cautious stance ahead of China’s July economic data releases—covering retail sales and industrial production—which are expected to offer fresh indications of demand from another key consuming market.