Palm stays rangebound on El Niño concerns

Malaysian palm oil futures moved within a narrow band on Monday, Business Recorder reported, as traders weighed the risk of El Niño weather hurting output next year. The November contract on the Bursa Malaysia Derivatives Exchange rose 0.19% to 4,816 ringgit ($1,181.84) per metric ton by midday, after a 0.3% decline in the previous session.

A Kuala Lumpur based trader said contracts further out, notably February to May 2027, were trading above 5,000 ringgit, leaving the curve in contango. The trader suggested buyers were positioning for tighter supply in 2027 because El Niño could weigh on palm production. On the Dalian Commodity Exchange, the most active soyoil contract climbed 0.55%, while its palm oil contract gained 0.25%.

Cargo surveyor Intertek Testing Services estimated that Malaysian palm oil product exports for August 1-15 dropped 7.9% compared with a month earlier. Separately, Indonesian President Prabowo Subianto unveiled plans for a new exchange to set prices for strategic commodities by early next year. Reuters technical analyst Wang Tao identified 4,696 ringgit per metric ton as near-term support, saying a break below it could open a slide to 4,674 ringgit.