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07.09.202610:39:02UTC+00Palm Oil Moves Toward 26-Month High

Palm oil futures rose above 4,970 ringgit per tonne, approaching their highest level since December 2024, as traders evaluated the fallout from severe forest fires in Indonesia, the world’s largest producer. Thick haze has spread across parts of Southeast Asia, disrupting harvesting as plantation workers are reassigned to firefighting, while prolonged smoke and reduced sunlight may further impede palm fruit development. The unusually strong El Niño weather pattern is intensifying dry conditions, heightening fire risk and prolonging transboundary haze. More than 202,000 hectares have reportedly burned in Borneo and Sumatra, pushing pollution levels higher in Indonesia as well as Singapore, Malaysia, and the Philippines. Even so, a forecast increase in rainfall from around October could help contain the fires ahead of the wet season. Palm oil prices also drew support from stronger crude oil and vegetable oil markets.

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