03.09.202604:26:15UTC+00Palm Oil Rebounds on Dalian Gains, El Niño Risks

Malaysian palm oil futures firmed, trading near MYR 4,990 per tonne after recent declines, supported by stronger edible oil prices on the Dalian exchange. Market sentiment was further underpinned by mounting El Niño risks, which could bring drier weather to Southeast Asia.

Output in top producer Indonesia is projected to decline by 2.9% to 56.8 million tonnes in 2027. The country will also maintain its B50 biodiesel mandate next year, with implementation reportedly reaching about 80% so far. In India, refiners imported a record volume of soyoil in August and the highest volume of palm oil in six months ahead of the festive season, providing additional demand support.

Upside, however, was limited by a stronger ringgit and softer crude oil prices. Export prospects also remained subdued, with cargo surveyors estimating that Malaysian palm oil shipments in August fell between 6.5% and 14.9% from July. At the same time, ample supply continued to weigh on the market, as Malaysian palm oil inventories climbed to a five-month high in July.