FX.co ★ Palm Oil Eases Slightly to Begin the Week

Malaysian palm oil futures dipped slightly to approximately MYR 4,440 per tonne, following modest gains in the previous session as trading resumed after last week's shortened holiday. Market sentiment was dampened by a stronger ringgit and weakness in the Dalian market's edible oils. Traders remained cautious in anticipation of upcoming data from the Malaysian Palm Oil Board, expected later this week. According to Reuters, stock levels are projected to increase for the sixth consecutive month in August, as production continues to outstrip exports despite indications of recovering demand. In China, a significant buyer, August trade figures fell short of expectations, impacted by U.S. tariffs and weak domestic demand. Nonetheless, losses were tempered by strong export signs, with cargo surveyors estimating a 10.2% to 15.4% rise in August shipments compared to July. In India, the leading buyer, palm oil purchases surged by 16% in August to reach 993,000 tonnes, marking the highest level since July 2024. This was driven by refiners boosting their buying ahead of the mid-October festival season, as palm oil remains significantly cheaper than soyoil.