Palm Oil Extends Gains

Malaysian palm oil futures rose further, trading above MYR 4,850 per tonne, supported by a weaker ringgit and higher crude oil prices amid persistent Middle East tensions. Supply concerns also lent support, as dry conditions in Indonesia and Malaysia raised risks to future output. However, gains were capped by softer edible oils on the Dalian markets. Meanwhile, August data from the Malaysian Palm Oil Board continued to paint a bearish picture, with inventories climbing 7.5% mom to an eight-month high, while production rose 1.4% and exports fell 7.5%. Early September shipments also stayed weak, with cargo surveyors noting an 11.7—17.5% drop in exports in the first 10 days from the same period in August. In India, heavy edible oil buying has congested major ports, delaying vessel unloading as storage tanks overflow, potentially curbing near-term import demand. In China, another major palm oil buyer, August economic data was mixed, suggesting uneven demand prospects.