Palm Oil Muted Ahead of Monthly Data

Malaysian palm oil futures were little changed, hovering around MYR 4,485 per tonne on Tuesday after two sessions of gains, as weakness in rival vegetable oils on Chicago exchanges weighed on sentiment. Traders remained cautious ahead of monthly data from the Malaysian Palm Oil Board in the coming days, with Reuters projecting inventories to climb for a sixth consecutive month in August as production continued to outpace exports despite signs of demand recovery. Market focus also shifted to China, a key buyer, where upcoming CPI and PPI data are expected to show persistent deflationary pressures, adding to concerns about slowing demand and trade frictions. On the supportive side, cargo surveyors estimated August shipments rose 10.2%–15.4% from July. In top buyer India, palm oil imports jumped 16% to 993,000 tonnes—the highest since July 2024—as refiners stocked up ahead of the mid-October festival season, with palm oil maintaining a steep discount to soyoil.