Palm Oil Snaps Back On Festival Demand, Floods Disrupt Supply Chain

Palm oil resumed gains as seasonal demand optimism returned. Traders are keeping a close watch on floods in Malaysia and other top producing regions across Asia. Market sentiment improved after early festival-linked buying activity picked up pace. “Festival season buying has commenced,” said Gnanasekar Thiagarajan, Head of Trading and Hedging Strategies at Kaleesuwari Intercontinental. Weather conditions are now emerging as a parallel threat to deliveries and supply timing. Thiagarajan warned that widespread rainfall and floods could strain the supply chain. “Floods will obstruct logistics and movement, curtailing supply at a time when demand is expected to rise sharply,” he added. Malaysia and Indonesia remain the most exposed to weather-led logistical bottlenecks. Estate output transfers to refineries and port deliveries could see delays if the flooding persists. Price volatility is expected to continue as festival-driven demand strength meets weather-hit supply fragility. For ...