Palm Oil Dips to Near Six-Week Low

Malaysian palm oil futures extended recent losses, hovering below MYR 4,750 per tonne and nearing a six-week low, pressured by weaker edible oils on the Dalian and Chicago exchanges and a further drop in crude oil prices on hopes for a diplomatic resolution to the U.S.-Iran conflict at the UN. Export signals were also weak, with cargo surveyors estimating shipments fell between 12.8%—24.7% mom during September 1—20, while EU imports for the 2026/27 season plunged 26% to 0.56 million tonnes. Still, losses were limited by stronger demand prospects in top consumer India, where August palm oil imports rose 7% from July to 782,761 tonnes, the highest since February, as refiners replenished stocks ahead of festivals. On the supply side, the world's largest palm oil producer, Indonesia, is expected to face a shorter-than-usual wet season from November, potentially affecting crop conditions. Meanwhile, Malaysia raised its October CPO reference price but kept the export duty unchanged at 10%.