21.08.202503:50:10UTC+00Palm Oil Trades Around MYR 4,500

Malaysian palm oil futures remained around MYR 4,500 per tonne, recovering slightly after dropping to MYR 4,450 previously. This stabilization is bolstered by the performance of other edible oils on the Dalian and CBOT exchanges. The market sentiment also improved due to strong export indicators, as cargo surveyors noted a 13.6% to 17% rise in Malaysian palm oil product shipments from August 1–20 compared to July figures. The Malaysian Palm Oil Council anticipates that prices will remain above MYR 4,300 in the short term, driven by a tighter supply and increased biodiesel demand. This outlook aligns with USDA forecasts suggesting that more than half of the U.S. soybean harvest will be allocated for biodiesel production by 2026. In Indonesia, a leading producer, the government is gearing up to reclaim illegal plantations, enacting an outstanding court decision with military support. Furthermore, the Indonesia-EU Comprehensive Economic Partnership Agreement (IEU-CEPA) could boost international recognition of Indonesian palm oil as a sustainable commodity. Nonetheless, potential price increases are being limited by supply factors, with July production rising by 7.1% and stock levels reaching their highest in nearly two years.