18.09.202605:05:15UTC+00Palm Oil Retreats on Profit Taking But Heads for weekly gain

Malaysian palm oil futures traded just below MYR 4,910 per tonne, giving back recent gains as weakness in rival edible oils on the Dalian and Chicago exchanges pressured market sentiment. Prices also retreated from a 21‑month high on profit-taking, while lackluster exports added to the downside. Cargo surveyors estimated that palm oil shipments for September 1–15 fell by 17.8% to 25.6% from August levels.

Crude oil prices also eased as additional cargoes helped alleviate supply concerns, in turn dampening palm oil’s appeal as a biodiesel feedstock. Despite the pullback, palm oil futures remained on course for a weekly gain of about 1.9%, underpinned by expectations of tighter supplies ahead.

Indonesia’s B50 biodiesel mandate is expected to divert more palm oil into domestic consumption, while El Niño-related weather risks could constrain output in both Indonesia and Malaysia. In India, palm oil imports rose 7% in August to 782,761 tonnes, the highest level since February, as refiners rebuilt inventories ahead of the festival season.

Separately, Malaysia raised its October crude palm oil reference price but left the export duty unchanged at 10%.