Palm Oil Rebounds on Firmer Dalian, India Duty Cuts
Malaysian palm oil futures strengthened, hovering near MYR 4,790 per tonne after recent declines, boosted by a weaker ringgit, firmer edible oils on the Dalian market, and India’s decision to cut basic import duties on crude and refined vegetable oils ahead of the September—November festive season, in an effort to curb domestic food inflation. Supply concerns also lent support, as top supplier Indonesia is expected to face a shorter-than-usual wet season from November, potentially affecting crops. However, the upside was tempered by expectations of higher Malaysian inventories, with a brokerage forecasting end-stocks to hit around 3 million tonnes or slightly higher by September-end, driven by a double-digit rise in production, particularly in Sabah. Exports also stayed sluggish, with cargo surveyors noting shipments fell between 12.8%—24.7% mom during September 1—20. In the energy market, softer crude prices amid improving Gulf supply also weighed on sentiment.
Malaysian palm oil futures strengthened, hovering near MYR 4,790 per tonne after recent declines, boosted by a weaker ringgit, firmer edible oils on the Dalian market, and India’s decision to cut basic import duties on crude and refined vegetable oils ahead of the September—November festive season, in an effort to curb domestic food inflation. Supply concerns also lent support, as top supplier Indonesia is expected to face a shorter-than-usual wet season from November, potentially affecting crops.
However, the upside was tempered by expectations of higher Malaysian inventories, with a brokerage forecasting end-stocks to hit around 3 million tonnes or slightly higher by September-end, driven by a double-digit rise in production, particularly in Sabah. 7% mom during September 1—20. In the energy market, softer crude prices amid improving Gulf supply also weighed on sentiment.