Palm Oil Ends 4-Session Rally on Profit Taking

Malaysian palm oil futures fell around 1% to below MYR 4,350 per tonne, snapping the four-session winning streak as traders booked profits after prices hit their highest since early April. Sentiment was also rattled by lower edible oil prices on the Dalian exchange, a stronger ringgit, and bets of higher Malaysian output. Industry data showed July production rose 7.1% to 1.81 million tons, while inventories hit a near two-year high of 2.11 million tons. Caution also persisted ahead of China’s July activity data, with concerns over the impact of sweeping U.S. tariffs and weak domestic demand. Still, futures were up about 3% so far this week, marking a second straight weekly gain, lifted by strong exports—shipments in the first ten days of August surged over 23%, according to cargo surveyors. Malaysia also raised its September crude palm oil reference price, increasing export duty to 10%. In top buyer India, demand may rise as buyers stock up ahead of the mid-October Diwali festival.