12.08.202603:13:07UTC+00Palm Oil Retreats on Ample Supplies, Profit-Taking

Malaysian palm oil futures slipped below MYR 4,720 per tonne as traders locked in profits after prices hit a two-week high. The decline mirrored losses in edible oils on the Dalian exchange and was exacerbated by signs of abundant supply: July inventories climbed 3.32% to 2.63 million tonnes, while production jumped 9.41% to 1.79 million tonnes. Softer inflation data from China, the world’s largest edible oil importer, highlighted subdued demand and further pressured sentiment. Even so, the downside was limited by a weaker ringgit and firmer soyoil prices on the Chicago exchange. In key buyer India, expectations of strong festive-season demand offered additional support after July imports reached a ten-month high. Export prospects also improved, with cargo surveyors estimating that shipments increased between 2.6% and 14.8% in the first ten days of August. At the same time, stronger crude oil prices provided a further boost to the broader commodity complex, as supply concerns in the Middle East—intensified by attacks on two vessels and uncertainty surrounding a potential U.S.–Iran peace deal—lent additional support.