11.09.202504:39:48UTC+00Palm Oil Snaps Two Sessions of Losses

Malaysian palm oil futures have stabilized above MYR 4,400 per tonne after experiencing declines over the previous two sessions. This stabilization is supported by the further weakening of the ringgit and anticipation of strong demand from India, the largest buyer, as the mid-October festive season approaches. India's palm oil imports increased by 16% in August, reaching 993,000 tonnes, marking the highest level since July 2024. This surge is attributed to refiners increasing their inventories due to palm oil's significant price discount compared to soyoil. In the broader energy market landscape, oil prices have risen for the third consecutive day amid ongoing geopolitical tensions. However, gains have been constrained by softer prices in the Dalian vegetable oil market. Additionally, indications of weaker exports have surfaced, with cargo surveyors reporting that Malaysia's palm oil shipments from September 1–10 decreased by 1.2% to 8.4% compared to the same period in August. Industry data also reveals that palm oil stocks in Malaysia at the end of August increased by 4.2% from July, reaching 2.2 million tonnes, while production rose by 2.4% to 1.86 million tonnes. Meanwhile, in China, another major consumer, concerns about deflation highlight ongoing weak domestic demand.