Palm Oil Set to Close Week on Solid Gains

Malaysian palm oil futures rose around 1% to above MYR 4,280 per tonne, snapping a two-session losing streak, buoyed by a weaker ringgit and gains in rival Dalian palm and Chicago soyoil. For the week, the contract is set to log a near 1% gain, rebounding from prior losses. Prices were supported by optimism that top buyer India may start early purchases in August and September ahead of the Diwali festivals in mid-October. In Indonesia, the world’s largest producer, biodiesel consumption remained strong, driven by the higher 50% blending mandate. However, further gains were limited by concerns over rising supply, as production typically peaks in October. An industry association said crude palm oil output rose 9.0% mom in July. Caution also grew ahead of monthly data from the Malaysian Palm Oil Board next week. Reuters forecast July stockpiles rose for a fifth month to a near two-year high, while exports likely grew 3.2%, capped by stiff competition from Indonesia’s discounted offerings.