19.08.202504:45:02UTC+00Palm Oil Rises for 3rd Session

Malaysian palm oil futures have seen an increase of approximately 1%, reaching around MYR 4,600 per tonne. This marks the third consecutive session of gains, maintaining levels not seen since early March. Several factors contributed to this rise, including a depreciating ringgit, the strength of competing Dalian edible oils, and increased exports. This uptick in exports, as reported by cargo surveyors, showed a growth of 6.5% to 21.3% in the first half of August compared to the previous month. Additionally, the anticipation of demand spurred by festive seasons from India, the leading purchaser, added to the positive outlook. This comes after a 10.5% decline in Indian imports in July, due to increased tariffs on crude palm oil and refined palm olein, now at 19.25%, up from 8.25%. In China, governmental pledges for targeted economic support are viewed as likely to bolster demand for edible oils in the country, the world's second-largest importer of palm oil. Nevertheless, the potential for further price increases is limited by expectations of increased supply, as July's output rose by 7.1% to 1.81 million tons, with stockpiles reaching near two-year highs at 2.11 million tons. Concurrently, oil prices have softened amid speculations regarding a possible meeting between Russia and Ukraine.