Palm Oil Extends Losses

Malaysian palm oil futures fell below MYR 4,250 per tonne, retreating for the second session amid a stronger ringgit and weakness in Dalian palm olein. Rising supply concerns also mounted after the Malaysian Palm Oil Association reported a 9.0% mom rise in crude palm oil output for July. Meanwhile, the Malaysian Palm Oil Board’s monthly report is due next week, with Reuters estimating stockpiles rose for the fifth month to near a two-year high, driven by strong production and tepid domestic demand. Exports likely rose 3.2%, though gains were capped by stiff competition from top grower Indonesia, which offered steep discounts. In top buyer India, imports shrank 10% in July from June’s 11-month high due to contract cancellations. Still, strong trade figures in July from China, a key buyer, limited further losses. Meanwhile, Indonesia remains in talks with the U.S. to secure exemptions for several key exports—including crude palm oil—as its shipments face a newly imposed 19% tariff.