Malaysian palm oil futures steady near MYR 4,900 as supply and demand signals diverge

  • Malaysian palm oil futures steadied near MYR 4,900 per tonne after recent declines.
  • Indonesia’s 2027 palm oil output is projected to fall 2.9% to 56.8 million tonnes.
  • August Malaysian shipments fell 6.5% to 14.9% from July, cargo surveyors estimated.

Malaysian palm oil futures steadied near MYR 4,900 per tonne after recent declines, as firmer Dalian edible-oil prices offset softer Chicago soyoils. Stronger crude oil prices, driven by renewed U.S.-Iran hostilities and supply concerns, also supported sentiment, while rising El Niño risks raised concerns about drier conditions in Southeast Asia. Indonesia’s palm oil output is projected to fall 2.9% to 56.8 million tonnes in 2027, and the country plans to maintain its B50 biodiesel mandate next year, with implementation reportedly reaching 80%. Demand prospects improved in India, where refiners imported record soyoil volumes and the most palm oil in six months ahead of festivals. However, futures were set for a second weekly loss as cargo surveyors estimated August shipments fell 6.5% to 14.9% from July, while Malaysian inventories reached a five-month high in July.

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Malaysian palm oil futures steady near MYR 4,900 as supply and demand signals diverge - CoinPost Terminal