Malaysian palm oil futures rise above MYR 4,850 as demand stays soft
Malaysian palm oil futures climbed above MYR 4,850 per tonne, helped by a weaker ringgit and firmer Dalian edible oils. Bargain buying followed a one-week low, but gains were capped by softer Chicago soybean oil and retreating crude.
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Malaysian palm oil futures climbed above MYR 4,850 per tonne, rebounding from recent losses as a weaker ringgit boosted competitiveness and firmer edible oils on the Dalian exchange lent support.
Bargain buying also emerged after prices touched a one-week low.
Weather risks also weighed on sentiment, with a developing El Niño raising concerns about potential dryness and output cuts in Indonesia and Malaysia.
Meanwhile, the B50 biodiesel mandate in top supplier Indonesia is slated for full implementation on October 1, reinforcing bets of stronger domestic consumption and tighter export supply.
However, gains were capped by softer soybean oil prices on the Chicago exchange and a further retreat in crude oil.
On the demand side, cargo surveyors estimated that Malaysian palm oil product exports for August 1—25 fell between 11.4% and 20% from the same period in July, underscoring sluggish momentum.
Ample supply also weighed, with Malaysian inventories rising to a five-month high in July.