Palm Oil Poised for Modest Weekly Gain

Malaysian palm oil futures were little changed, trading near MYR 4,440 after rising in the previous two sessions. Support from stronger Dalian oils and higher crude oil prices was offset by weakness in Chicago soyoil. Market participants also assessed the EU’s decision to delay its anti-deforestation law for a second time, postponing the ban on imports of commodities such as palm oil linked to forest destruction by another year. The Malaysian Palm Oil Council welcomed the move, saying it allows the EU more time to address concerns over implementation. For the week, palm oil is on track for a moderate 0.4% rise, snapping declines in the past two periods. Gains were underpinned by firmer export prospects, with cargo surveyors reporting that Malaysian palm oil shipments for September 1–25 rose between 11.3% and 12.9% from a month earlier. Meanwhile, demand from the top buyer India is expected to remain strong ahead of the October festive season.