Palm oil futures extend gains near 2% after Malaysia reopens
Malaysian palm oil futures rose near 2% to near MYR 4,900/tonne, a one-week high. Moves were supported by firmer edible oils, a weaker ringgit, and stronger crude, tempered by weaker exports and higher inventories.
Malaysian palm oil futures jumped near 2% to near MYR 4,900 per tonne, extending the previous session’s rally and hitting a one-week high as traders returned from a holiday.
Sentiment was lifted by firmer edible oils on the Dalian and Chicago exchanges, along with a weaker ringgit.
Stronger crude oil prices also provided support amid renewed concerns over potential supply disruptions.
Meanwhile, growing El Niño risks added to concerns over drier conditions and potential production losses across Southeast Asia.
However, gains were tempered by weak export demand and ample supplies.
Cargo surveyors estimated Malaysian palm oil exports fell between 11.4% and 20% during August 1-25 from the same period in July, while inventories climbed to a five-month high in July, reinforcing concerns over supply pressure.
Demand from India could also face headwinds as refiners favour cheaper soyoil, although expectations for strong August vegetable oil imports may provide some underlying support.