07.08.202604:17:31UTC+00Palm Oil Eases Further But Heads for Modest Weekly Gain

Malaysian palm oil futures hovered just below MYR 4,700 per tonne, extending their recent decline as weakness in Dalian palm olein and Chicago soyoil pressured sentiment. Traders also turned cautious ahead of next week’s monthly report from the Malaysian Palm Oil Board, after a Reuters survey indicated that July inventories likely rose to a five‑month high as seasonal production outpaced demand.

Despite the softer tone, palm oil futures were still on track for a modest weekly gain of about 0.5%, clawing back some of the previous losses. Support came from demand prospects in top buyer India, where July imports jumped to a 10‑month high as refiners built stocks of palm oil and soyoil ahead of the festive season amid tightening domestic supplies.

Exports also lent support to prices, with cargo surveyors estimating that Malaysia’s palm oil shipments in July increased by between 12.1% and 19.5% from June. In China, another key consumer, July trade data showed resilient export and import activity despite moderating economic growth, reinforcing a broadly supportive backdrop for overall commodity demand.