FX.co ★ Palm Oil Weighed by Weak Exports, India Bottleneck

Malaysian palm oil futures traded quietly around MYR 4,960 per tonne, weighed down by a stronger ringgit and softer prices for rival edible oils on the Dalian and Chicago exchanges. Export performance remained weak: cargo surveyors estimated that August palm oil shipments fell between 6.5% and 14.9% from July, while inventories in July rose to a five-month high. In India, heavy buying of vegetable oils has clogged major ports, delaying vessel unloading by up to 10 days as storage tanks reach capacity, a situation that could curb import demand in the near term. In Indonesia, the top supplier, new technical regulations have tightened central government oversight of key export commodities, including palm oil, in line with President Prabowo Subianto’s strategy to increase state revenue from natural resources. Even so, downside pressure on prices was limited by firmer crude oil amid renewed tensions in the Middle East. At the same time, unusually dry weather across Southeast Asia has raised concerns over future yields, following outbreaks of fires and haze in Borneo and Sumatra.