04.09.202505:14:16UTC+00Palm Oil Set to Close Week with Solid Gains

Malaysian palm oil futures have stabilized above MYR 4,450 per tonne, marking a recovery from the losses incurred in the previous session, thanks to strengthening in competing oils on the Chicago market. The prices are poised for a weekly rise of approximately 2%, following a significant drop last week. This uptrend is buoyed by robust export estimates for August, with cargo surveyors noting increases ranging from 10.2% to 15.4% compared to July. The demand has further been spurred by increased purchases from India, the largest buyer, which saw a 16% month-on-month rise to 993,000 tonnes—its highest since July 2024—as refiners prepared for the mid-October festive season. However, further price increases have been restrained by a stronger ringgit. Concurrently, a Reuters forecast indicated that Malaysia’s palm oil inventories likely increased for the sixth consecutive month in August, as production continued to outstrip exports despite the stronger demand. In the larger energy market, crude oil prices continued to fall amid concerns about rising supply. It is notable that Malaysian markets will remain closed on Friday due to a public holiday.