FX.co ★ Palm Oil Steady Ahead of MPOB Data, Strong Early Exports

Malaysian palm oil futures remained relatively stable, hovering around MYR 4,255 per tonne after experiencing slight gains in the previous session. Traders are on hold as they await the Malaysian Palm Oil Board's report on July supply and demand, expected later today. According to Reuters, the report is anticipated to show that stockpiles increased for the fifth consecutive month, reaching levels not seen in nearly two years. Additionally, exports are expected to have risen by 3.2%, albeit constrained by intense competition from Indonesia's lower-priced offerings. Intertek Testing Services, a cargo surveyor, indicated that shipments of Malaysian palm oil products surged by 23.3% from August 1–10 compared to the same period in July, reaching 482,576 metric tons. Investors are also closely watching the upcoming deadline on August 12 for China to secure a comprehensive tariff agreement with the U.S. In Indonesia, robust biodiesel demand is sustained by the 50% blending mandate. Meanwhile, India, a major consumer, is anticipated to see early buying activity in August and September in anticipation of the mid-October Diwali festivals.