15.09.202604:03:11UTC+00Palm Oil Extends Gains

Malaysian palm oil futures extended their advance, trading above MYR 4,850 per tonne, driven by a weaker ringgit and firmer crude oil prices amid ongoing tensions in the Middle East. Supply-side worries also underpinned the market, as unusually dry weather in Indonesia and Malaysia heightened risks to future output.

Upside, however, remained limited by softness in rival edible oils on the Dalian exchange. At the same time, August figures from the Malaysian Palm Oil Board continued to signal a bearish backdrop: inventories climbed 7.5% month-on-month to an eight-month high, production inched up 1.4%, and exports declined 7.5%. Early September shipment data were similarly weak, with cargo surveyors reporting an 11.7%–17.5% drop in exports during the first 10 days compared with the same period in August.

In India, robust edible oil purchases have clogged major ports, delaying vessel discharge as storage tanks reach capacity—a situation that may dampen near-term import demand. In China, another key palm oil consumer, August economic indicators were mixed, pointing to an uneven outlook for demand.