Palm oil remains strong; weather concerns and anticipation of industry data become focal points

⑴ The Malaysia Exchange Derivatives palm oil contract for November delivery rose by about 50 ringgit to approximately 4,979 ringgit per ton, with the market’s trading focus continuing to move upward. ⑵ Kenanga Futures pointed out in its report that ongoing concerns about the potential impact of the El Niño phenomenon, which may bring hot and dry weather affecting production, have provided solid support for prices, and the market is currently pricing in potential supply risks. ⑶ Investors are now closely watching the Malaysian Palm Oil Board’s August industry data, which is due to be released later this week, hoping to find clearer fundamental guidance from the actual production, inventory, and export figures. ⑷ The tug of war between weather factors and the realization of data will dominate the short-term trend; if the increase in inventory falls short of expectations or production data is tighter than anticipated, prices could gain further upward momentum.