Palm Oil Futures Hit Two-Week High Amid Weaker Ringgit

Palm oil futures continued their upward trend, reaching a two-week high of MYR 4,740 per tonne in Malaysia. The gain was driven by a weaker ringgit, which improved export competitiveness, and firmer palm olein prices on the Dalian exchange.

The bullish sentiment was reinforced by an increase in Malaysian palm oil shipments, with cargo surveyors reporting a rise of between 2.6% and 14.8% in the first 10 days of August.

However, signs of abundant supply capped gains, with Malaysia's July inventories rising 3.32% month-on-month to 2.63 million tonnes, and production jumping 9.41% to 1.79 million tonnes.