Palm Oil Prices Ticked Up Again Amid El Nino Fears

Palm oil prices have increased again due to traders weighing Malaysia's largest stockpile in five months against early-August export data and the potential impact of El Nino on future production.

The Malaysian Palm Oil Board (MPOB) reported that July inventories rose 3.32% from June to 2.63 million tons, exceeding expectations as production outpaced exports.

This has led to a tug-of-war between supply and demand signals, with traders closely watching the discrepancy between AmSpec's +14.8% August export estimate and Intertek's +2.6% forecast for the same period.

The US Department of Agriculture (USDA) report due on August 12th will also be a key indicator, as changes to its global vegetable-oil outlook can affect palm oil prices via competition with soybean oil.