Palm Oil Retreats Following Previous Rally

Malaysian palm oil futures slipped nearly 1% to below MYR 4,450 per tonne, as traders booked profits following a surge of more than 2% in the previous session. Sentiment was also weighed by concerns of a seasonal rise in output after July’s production climbed 7.1% from a month earlier to 1.81 million tonnes. Still, further losses were limited by a weaker ringgit. Meanwhile, purchases from top buyer India rose 16% month-on-month to 993,000 tonnes—the highest since July 2024—as refiners stepped up buying ahead of the festive season in mid-October, dealers said. On the export front, cargo surveyors estimated Malaysian palm oil product shipments in August increased between 10.2% and 15.4% from July. Meanwhile, Indonesia, the world’s largest producer, reported crude and refined palm oil exports up 11% year-on-year in the first seven months of 2025 to 13.64 million tonnes, highlighting resilient global demand.