Palm Oil Extends Losses, Still on Track for 3rd Monthly Gain

Malaysian palm oil futures slipped almost 1% to around MYR 4,400 per tonne, marking losses for the second session to notch their lowest level in two weeks. A stronger ringgit and weakness in rival edible oils on the Dalian and Chicago exchanges weighed on sentiment, while caution grew ahead of the official August PMI in the mainland, with traders watching closely as China remains a key buyer of palm oil. Broader energy markets also offered little support, with crude oil heading for its first monthly drop in four. Still, the contracts are set for a third straight monthly gain, surging about 4% so far, underpinned by strong exports. Cargo surveyors estimated Malaysian shipments rose between 10.9% and 16.4% during August 1–25. In India, the world’s top importer, demand prospects improved ahead of the Diwali festival season in mid-October. Meanwhile, Indonesia, the largest producer, secured a U.S. tariff exemption on commodities including palm oil, a move that could reshape trade flows.