Palm Oil Trades Lower to Kick Off the Week

Malaysian palm oil futures slipped to around MYR 4,510 per tonne, reversing a rally from the previous session as a stronger ringgit and weaker Chicago soyoil weighed on sentiment. Caution also grew as traders awaited export estimates from cargo surveyors for August 1–25, due later today. Still, losses were limited by expectations of festive-led demand in top buyer India ahead of the Diwali celebrations in mid-October. In July, Indian purchases surged 16% from June to 301,000 tonnes, the highest in nine months, even as Malaysia’s inventories rose to a 19-month high of 2.11 million tonnes. Meanwhile, top producer Indonesia urged the European Union to lift countervailing duties on biodiesel imports after the World Trade Organization backed Jakarta on several key claims in its complaint, a move that could bolster palm oil–based biodiesel exports to Europe if the duties are rolled back.