Palm Oil Firms After Steep Fall, Hovering Around MYR 4,250

Malaysian palm oil futures rose modestly to MYR 4,250 per tonne, slightly rebounding from a sharp 2.0% decline in the previous session, as firmer Dalian palm olein prices lifted sentiment. Meanwhile, the Malaysian Palm Oil Council (MPOC) expects prices to stay firm in August, supported by festive demand from India—the world’s largest palm oil consumer—and elevated U.S. soybean oil prices. Bullish momentum is projected to continue into the third quarter, driven by restocking ahead of India’s Diwali festival in mid-October, with imports forecast at around 2.9 million tonnes during the period. Separately, Malaysia raised its August reference price, pushing the export duty to 9% from 8.5% in July. However, gains were limited by a stronger ringgit and declining crude oil prices amid global demand concerns. Export weakness also persisted, with cargo surveyors estimating a 3.5%–7.3% drop in palm oil shipments during July 1–20 from the prior month.