After a three-day dip, palm oil prices bounced back, driven by expectations of increased buying from India and a sharp overnight surge in soybean oil prices. Futures for soy oil in Chicago jumped 4.7%—the biggest gain in over two months—on anticipation of the U.S. EPA’s upcoming biofuel blending decision.
Malaysia, the world’s second-largest palm oil producer, saw exports rise 13.6% in the first 20 days of August, with notable increases to the EU, Africa, and India, according to Intertek Testing Services. Traders cite strong demand from India ahead of the Diwali festival as a key support factor, with edible oil consumption typically rising during this festive season.
🌱 Soybean Market Snapshot
Soybeans ended the week mostly firm, despite mixed performance. Dry weather forecasts for early September could impact yields, and while crop tours show solid pod counts, estimates remain below USDA projections. The next update is due September 12. However, sluggish export demand from China continues to weigh on sentiment.
🛢️ Key Takeaway
Festive demand, export momentum, and biofuel policy speculation are injecting fresh energy into edible oil markets. Traders should watch India’s buying pace and U.S. regulatory moves closely.
