Palm Oil Set for Third Straight Weekly Rise

Malaysian palm oil futures hovered near MYR 4,500 per tonne after three straight sessions of losses, supported by a weaker ringgit and gains in rival Dalian and Chicago edible oils. Sentiment was also lifted by strong export expectations, as cargo surveyors reported that Malaysian palm oil shipments during August 1–20 rose 13.6% to 17% from July. In top buyer India, purchases in July jumped 16% from June to 301,000 tonnes, the highest in nine months, even as Malaysia’s inventories climbed to a 19-month high of 2.11 million tonnes. Meanwhile, the Malaysian Palm Oil Council expects India’s demand to stay firm in September as importers stock up ahead of the Diwali festivals. In the U.S., policy uncertainty over small refiners’ biofuel waivers kept traders cautious, with the Trump administration expected to issue a ruling as early as Friday while delaying a decision on larger refiners’ obligations. For the week, contracts are on track for a third straight gain, so far up about 0.5%.