Palm oil futures extend gains toward six-month high
Malaysian palm oil futures trade around MYR 4,990 a tonne, their highest since December 2024, and are on track for their biggest weekly rise in 24 weeks, up nearly 6% so far.
Malaysian palm oil futures extended their gains, trading around MYR 4,990 per tonne and reaching their highest level since December 2024.
The contract is also on track for its biggest weekly rise in 24 weeks, up nearly 6% so far, marking its third straight weekly advance.
The rally was supported by strength in Dalian vegetable oils, while in top producer Indonesia, buyers have stepped up purchases ahead of the full implementation of the B50 biodiesel mandate in October.
Meanwhile, the developing El Niño raised concerns of worsening dryness that could curb output in Indonesia and Malaysia.
Still, upside was capped by ample supply, with Malaysian inventories climbing to a five-month high in July.
Demand risks also weighed, as India’s refiners may favor cheaper soyoil, with record imports expected in August.
Meanwhile, cargo surveyors estimated palm oil shipments during August?1—20 fell 5.5%—13.2% from the same period in July, underscoring weak export momentum.