Palm Oil Retreats on Profit-Taking Ahead of Key Data

Malaysian palm oil futures slipped around 1% to below MYR 4,250 per tonne as traders booked profits after a 2.5% rally in the prior session. Sentiment also turned cautious ahead of key Chinese economic data, including July trade, CPI, and PPI figures, as China remains a major buyer. Investors anticipated next week’s supply-and-demand report from the Malaysian Palm Oil Board, with Reuters estimating inventories rose for the fifth month in July to near a two-year high, driven by strong production and subdued domestic consumption. Exports were seen up 3.2% to 1.3 million tonnes, though gains were limited by stiff competition from top producer Indonesia, which offered steep discounts ahead of tariff hikes. In India, the largest palm oil importer, July imports fell 10% to 858,000 tonnes from June’s 11-month high, due to contract cancellations. Losses were capped by U.S. President Trump’s remarks that Washington and Beijing are “very close” to extending their trade truce beyond August 12.