Malaysian palm oil futures slip below MYR 4,900 to one-week low

Malaysian palm oil futures extended losses, trading below MYR 4,900 per tonne and touching their lowest level in a week as traders returned from a holiday.

Sentiment was pressured by a stronger ringgit and weaker soyoil prices on the Chicago market, while crude oil fell on renewed hopes that the Strait of Hormuz could reopen.

Demand concerns also weighed, with cargo surveyor Intertek Testing Services noting that palm oil product exports for August 1—25 dipped 20% from the same period in July.

Ample supplies added to the bearish tone, as Malaysian palm oil inventories climbed to a five-month high in July.

Separately, exports by top grower Indonesia fell 9.2% yoy in June, according to palm oil association GAPKI.

Still, losses were capped by firmer Dalian soyoil prices.

Concerns that a developing El Niño could intensify dryness and curb output in Indonesia and Malaysia also provided support, along with Indonesia's planned full implementation of its B50 mandate from Oct 1.