Palm oil futures hovered around 5,000 ringgit per tonne, moving toward their highest level since December 2024, as a weaker ringgit and stronger edible-oil prices in Dalian and Chicago supported gains. A crude oil rally, fueled by fears of prolonged Middle East conflict and supply risks, provided additional support. Severe El Niño conditions have intensified drought across Southeast Asia, contributing to fires and haze in Borneo and Sumatra, where more than 202,000 hectares have reportedly burned. Smoke, reduced sunlight and firefighting demands have disrupted harvesting and could weigh on palm-fruit development. Gains were limited by sluggish exports, with August shipments estimated to have fallen 6.5% to 14.9% from July, while inventories reached a five-month high. Heavy vegetable-oil buying has also congested Indian ports, delaying unloading by up to 10 days as storage tanks fill and refiners struggle to clear cargo, potentially weakening near-term import demand.