Palm Oil Poised for First Weekly Drop in Four

Malaysian palm oil futures dipped over 2% to below MYR 4,250 per tonne, snapping a three-session winning streak amid weakness in Dalian palm olein and Chicago soyoil. Signs of higher output also pressured sentiment, after the Malaysian Palm Oil Board projected production to rise to 19.5 million tons in 2025 from 19.3 million last year, due to improved labor supply. In Indonesia, the top producer, exports are forecast to drop to 28 million metric tons this year from 29.5 million in 2024, an industry association said. For the week, palm oil is on track for its first weekly decline in four weeks, down about 1.8% so far, as global trade risks linger ahead of next week’s third round of U.S.-China talks in Stockholm. Without a deal extension before the August 12 deadline, tariffs could surge to 145% on U.S. exports and 125% on Chinese goods. Still, a weaker ringgit helped limit further losses. Meanwhile, festive demand from top buyer India is expected to rise ahead of Diwali in mid-October.