Palm Oil Extends Gains

Malaysian palm oil futures climbed nearly 1% to above MYR 4,400 per tonne, marking advances for the second consecutive session on support from a weaker ringgit and strength in rival edible oils on the Dalian and Chicago exchanges. Export momentum also strengthened, with cargo surveyors reporting shipments rising 8.3%–8.7% in the first 20 days of September from the same period in August. Demand from the top buyer India is expected to stay firm ahead of the October festive season. In Indonesia, the world’s largest palm oil producer, exports to the European Union are projected to rise in 2026, aided by a bilateral trade pact and the EU’s decision to delay its anti-deforestation law for a second time. However, further gains were capped by expectations of peak output in September and October on the back of favorable weather. Meanwhile, end-August Malaysian inventories rose 4.2% month-on-month to 2.2 million tonnes, while Indonesian stocks were up 1.5% at end-July to 2.57 million tonnes.