Palm Oil Edges Up But Set for Weekly Loss

Malaysian palm oil futures inched higher to around MYR 4,240 per tonne amid bargain hunting after prices dipped to MYR 4,222 in the prior session. A weaker ringgit also supported sentiment, alongside data showing top producer Indonesia shipped a solid 11 million metric tons of crude and refined palm oil in H1 of 2025. However, prices are on track for a second straight weekly loss, down about 0.8%, after President Trump reaffirmed a 10% global base tariff and imposed duties of up to 41% on countries without trade deals with the U.S. In key buyer China, a private survey reported factory activity unexpectedly shrank in July, aligning with official data marking a fourth monthly drop. On the export front, July shipments were sluggish, with cargo surveyors noting a 6.7%–9.6% fall from June. Meanwhile, the EU is reportedly set to grant a zero tariff rate for up to 1 million tons of Indonesian crude palm oil annually under a pending free trade deal, raising competition for Malaysian exporters.