01.08.202504:45:42UTC+00Palm Oil Edges Up But Set for Weekly Loss

Malaysian palm oil futures experienced a slight uptick, reaching approximately MYR 4,240 per tonne, as bargain hunters took advantage after prices dropped to MYR 4,222 in the previous session. Supporting market sentiment was a weakened ringgit and data indicating that Indonesia, a leading producer, exported a robust 11 million metric tons of crude and refined palm oil in the first half of 2025. Nevertheless, prices are heading for a second consecutive weekly decline, down roughly 0.8%, following President Trump's reaffirmation of a 10% global base tariff along with duties of up to 41% on nations lacking trade agreements with the United States. In a key market, China, a private survey revealed an unexpected contraction in factory activity for July, echoing official data that indicated a fourth consecutive monthly decrease. Export-wise, shipments in July were lackluster, with cargo surveyors citing a 6.7% to 9.6% decline from June figures. Meanwhile, reports suggest that the European Union is preparing to offer a zero-tariff rate for up to 1 million tons of Indonesian crude palm oil annually under a pending free trade agreement, potentially increasing competition for Malaysian exporters.