Palm Oil Set to Close Week with Solid Gains

Malaysian palm oil futures hovered above MYR 4,450 per tonne, rebounding from the previous session’s losses amid strength in rival oils on the Chicago markets. Prices are on track for a weekly advance, up about 2% so far, following a sharp decline last week, supported by strong export estimates for August, with cargo surveyors reporting increases of 10.2% to 15.4% from July. Demand was further boosted by higher purchases from top buyer India, which climbed 16% month-on-month to 993,000 tonnes—the highest since July 2024—as refiners built stockpiles ahead of the mid-October festive season. Still, further gains were tempered by a stronger ringgit. Meanwhile, Reuters projected that Malaysia’s palm oil inventories likely rose for a sixth consecutive month in August, as production continued to outpace exports despite firmer demand. In the broader energy market, crude oil extended losses due to worries over rising supply. Malaysian markets will be closed on Friday for a public holiday.