Palm Oil Rises from 3-Week Low

Malaysian palm oil futures jumped over 1.5% to above MYR 4,250 per tonne, rebounding from losses in the prior session amid strength in rival Dalian oils and bargain hunting after prices neared a three-week low. In key buyer China, top leaders pledged to boost domestic demand ahead of October’s fourth plenum, which is expected to outline the next five-year economic plan. Sentiment was also lifted by hopes for an extension of the current U.S.-China trade truce. However, further gains were capped by a stronger ringgit and news that India’s palm oil imports fell 10% in July to 858,000 metric tonnes, from June’s 11-month high, due to contract cancellations. Meanwhile, Reuters estimated that Malaysian inventories rose for the fifth month running in July to their highest in near two years, driven by strong production and lower domestic use. Shipments were seen up 3.2% to 1.3 million tonnes, though exports remained under pressure from steep discounts offered by Indonesia ahead of tariff hikes.