Palm Oil Trades Around MYR 4,500

Malaysian palm oil futures hovered around MYR 4,500 per tonne, after hitting a low of MYR 4,450 the day before, supported by strength in rival edible oils on the Dalian and CBOT exchanges. Signs of solid exports also lifted sentiment, with cargo surveyors reporting shipments of Malaysian palm oil products during August 1–20 rose 13.6% to 17% from July. Meantime, the Malaysian Palm Oil Council expects prices to hold above MYR 4,300 in the near term on tighter supply and stronger biodiesel demand, citing USDA projections that over half of U.S. soybean output will be used for biodiesel by 2026. In top grower Indonesia, the government plans to seize illegal plantations, enforcing a long-pending court ruling with military support. At the same time, the Indonesia-EU Comprehensive Economic Partnership Agreement (IEU-CEPA) may enhance recognition of Indonesian palm oil as sustainable. However, supply prospects capped further gains, with July output up 7.1% and inventories near a two-year high.