28.08.202504:27:04UTC+00Palm Oil Retreats, Trades Below MYR 4,500

Malaysian palm oil futures remained just below MYR 4,500 per tonne, following slight increases in the prior session, influenced by a stronger ringgit and declines in competing edible oils on the Dalian and Chicago exchanges. On the supply front, the Malaysian Palm Oil Association indicated a small rise in crude palm oil production for the period of August 1–20, compared to the same timeframe in July. Additionally, data from the EU revealed a 34% year-over-year decline in palm oil imports, amounting to 352,275 tonnes for the 2025–26 season commencing in July, highlighting stricter sustainability regulations. Nonetheless, losses were curtailed due to steady demand, as cargo surveyors projected a 10.9% increase in Malaysian palm oil exports, reaching 16.4% from August 1–25. Festive purchasing cues from India, the world's leading importer, also bolstered market sentiment in anticipation of Diwali in mid-October. In broader trade updates, the U.S. has decided to exempt crucial Indonesian agricultural exports, such as palm oil, from a 19% tariff, while Malaysia has asserted it has contingency strategies to protect exports under the EU's deforestation regulations.