Palm Oil Snaps Two Sessions of Losses

Malaysian palm oil futures hovered above MYR 4,400 per tonne after declines in the prior two sessions, helped by a further weakening of ringgit and bets of strong demand from top buyer India ahead of the mid-October festive season. India’s palm oil imports surged 16% in August to 993,000 tonnes, the highest since July 2024, as refiners built inventories with palm oil trading at a steep discount to soyoil. In broader energy markets, oil prices rose for a third day amid ongoing geopolitical tensions. However, softer Dalian vegetable oil prices capped further gains. Signs of weaker exports also emerged after cargo surveyors noted Malaysia’s palm oil product shipments during September 1–10 fell between 1.2% and 8.4% from the same period in August. Meanwhile, industry data showed that end-August palm oil stocks rose 4.2% from July to 2.2 million tonnes, while production rose 2.4% to 1.86 million tonnes. In China, a key consumer, deflation risks persisted, underscoring weak domestic demand.