Palm Oil Futures Ease

Malaysian palm oil futures eased, slipping below MYR 4,720 per tonne as profit-taking set in after a two-week high.

Losses tracked declines in edible oils on the Dalian exchange and were compounded by signs of ample supply: July inventories rose 3.32% to 2.63 million tonnes, while output surged 9.41% to 1.79 million tonnes.

Softer Chinese inflation data underscored weak demand in the world’s top edible oil importer, further weighing on sentiment.

Still, downside was cushioned by a weaker ringgit and firmer soyoil prices on the Chicago exchange.

In top buyer India, festive-season demand expectations lent support after July imports hit a ten-month peak.

Export prospects brightened as cargo surveyors estimated shipments rose between 2.6% and 14.8% in the first ten days of August.

Meanwhile, stronger crude oil prices added a tailwind, with Middle East supply concerns, heightened by attacks on two ships and uncertainty over a U.S.—Iran peace deal, bolstering the broader commodity complex.