Palm Oil Retreats, Trades Below MYR 4,500

Malaysian palm oil futures hovered below MYR 4,500 per tonne after modest gains in the prior session, weighed by a stronger ringgit and weakness in rival edible oils on the Dalian and Chicago exchanges. On the supply side, the Malaysian Palm Oil Association reported a modest rise in crude palm oil output during August 1–20 versus the same period in July. Meanwhile, EU data showed palm oil imports fell 34% yoy to 352,275 tonnes in the 2025–26 season starting July, reflecting tighter sustainability rules. Still, losses were limited by firm demand, with cargo surveyors estimating Malaysian palm oil exports up 10.9% to 16.4% during August 1–25. Signs of festive buying in India, the world’s top importer, also supported sentiment ahead of Diwali in mid-October. In broader trade developments, the U.S. agreed to exempt key Indonesian agro-exports, including palm oil, from a 19% tariff, while Malaysia said it has contingency plans to safeguard exports under the EU’s deforestation rules.