Palm Oil Dips Below MYR 4,800 Despite Strong Exports

Malaysian palm oil futures fell below MYR 4,800 per tonne, reversing recent gains amid weakness in Dalian palm oil and Chicago soyoils. Lower crude oil prices added pressure by reducing the relative appeal of palm oil for biodiesel production, while softer food-sector demand amid persistent inflationary pressures also weighed on sentiment. However, losses were limited by robust exports, with cargo surveyors reporting a 58.5%–78.4% surge in shipments during Oct. 1–20 from the corresponding period in September. Festival-related buying from India, the world's largest palm oil importer, provided additional support. For November, the Malaysian Palm Oil Council expects prices to remain above MYR 4,600, as India and China may turn to palm oil amid anticipated tightening sunflower and soybean oil supplies. Longer term, Indonesia's upcoming B50 biodiesel mandate is expected to underpin demand, given its potential to increase consumption in the top-producing country.

Malaysian palm oil futures extended gains, holding above MYR 4,800 per tonne amid strength in rival edible oils and a tightening supply outlook linked to severe El Niño conditions and Indonesia's upcoming B50 biodiesel mandate. Robust exports also supported prices, with cargo surveyors reporting a 58.5%–78.4% surge in shipments during Oct. 1–20 from the same period in Sept. Festival-related buying from India, the world's largest palm oil importer, has been a key demand driver. The Malaysian Palm Oil Council expects prices to stay above MYR 4,600 in Nov., noting that India and China may increase their reliance on palm oil amid anticipated supply constraints in sunflower and soybean oils. Elevated energy prices further supported prices by strengthening biodiesel demand prospects. However, gains were tempered by softer food-sector demand amid lingering inflation pressures. For the week, futures were on track for a third consecutive weekly rise, up nearly 1% so far.

Malaysian palm oil futures inched up, hovering above MYR 4,750 per tonne after recent losses, supported by robust exports and stronger demand prospects. Cargo surveyors reported a 58.5%–78.4% surge in shipments during October 1–20 from the same period in September, while festival-related demand from India, a key importer, further bolstered sentiment. Higher crude oil prices also lent support by enhancing palm oil’s competitiveness as a biodiesel feedstock. Meanwhile, Malaysia is considering a temporary waiver or reduction of its 10% crude palm oil export tax to help clear record-high inventories and improve global price competitiveness. Stocks reached an all-time high of 3.51 million tonnes in September. However, gains were capped by weaker palm olein futures in Dalian and lower soyoil prices in Chicago. Seasonal production is also expected to remain elevated in October following six consecutive monthly increases, reinforcing concerns over ample supplies.