Palm oil pushes above 4,970 ringgit toward 26-month high

Palm oil climbed above 4,970 ringgit per tonne, moving toward its highest level since December 2024, as traders assessed the potential impact of severe forest fires across Indonesia, the world’s largest producer. Thick haze has spread across parts of Southeast Asia, disrupting harvesting as workers are diverted to firefighting efforts, while prolonged smoke and reduced sunlight could also weigh on palm fruit development. The unusually severe El Niño weather pattern is exacerbating dry conditions, increasing the risk of fires and prolonging cross-border haze.

More than 202,000 hectares have reportedly burned across Borneo and Sumatra, with pollution levels rising in Indonesia as well as Singapore, Malaysia and the Philippines. However, an expected increase in rainfall around October could help contain the fires ahead of the wet season. Palm oil also benefited from firmer crude and vegetable oil prices.