Malaysian palm oil futures climbed to around 4,990 ringgit per tonne, their highest level since December 2024, and were on track for their strongest weekly gain in 24 weeks, up nearly 6% for a third consecutive weekly advance. Strength in Dalian vegetable oils, increased Indonesian buying ahead of the full implementation of the B50 biodiesel program in October, and concerns that developing El Niño conditions could worsen dryness in Indonesia and Malaysia supported the rally. Upside was limited by Malaysian inventories reaching a five-month high in July and by demand risks, including the possibility that Indian refiners will favor cheaper soyoil amid expectations of record August imports. Cargo surveyors estimated that Malaysian palm oil shipments from Aug. 1-20 fell 5.5% to 13.2% from the same period in July. The USDA expects global palm oil inventories to fall to a nine-year low in the 2026/27 season, while disruptions to sunflower oil exports from Russia and Ukraine continue to encourage buyers to seek alternative vegetable oils.