Palm Oil Set to Post Second Straight Weekly Gains

Malaysian palm oil futures edged higher, holding above MYR 4,400 per tonne and reversing the prior session’s losses amid a weaker ringgit and reports that Malaysia raised its September crude palm oil reference price, lifting the export duty to 10%. For the week, contracts are on track for the second successive weekly advance, up over 3.5% so far, boosted by strong export demand as cargo surveyors reported shipments in the first ten days of August surged more than 23% from a month earlier. However, weaker edible oil prices on the Dalian and Chicago exchanges capped further gains. Meanwhile, in top consumer India, July palm oil imports fell 10.5% from June to 855,695 metric tons, according to the Solvent Extractors’ Association, after a steep hike in crude palm oil and refined palm olein import duties to 19.25% from 8.25%. Meanwhile, fresh data from China, a major buyer, signaled slowing economic momentum in July amid trade barriers, weak domestic demand, and weather disruptions.