Palm Oil Slips Below MYR 4,700

2026-11-02 03:46 By Farida Husna 1 min. read

Malaysian palm oil futures fell below MYR 4,700 per tonne, reversing the previous rally as weaker crude oil prices reduced palm oil’s appeal as a biodiesel feedstock.

Record-high inventories added pressure, while mixed manufacturing data from China, a major palm oil importer, offered little clarity on the demand outlook.

The official PMI showed contraction, contrasting with continued expansion in the private-sector survey.

Still, a weaker ringgit and firm exports limited the decline.

Cargo surveyors reported a 46.9%–67.7% surge in shipments during October 1–25 from the same period in September, partly driven by pre-Diwali buying from top consumer India.

Meanwhile, Malaysia’s Finance Ministry is reportedly reviewing a proposal to suspend crude palm oil export taxes as inventories are expected to exceed 3 million tonnes by year-end amid peak seasonal production.

Traders will look to Malaysia's Palm Oil Board’s monthly report due November 10 for further clues on the supply-demand balance.



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Palm Oil Slips Below MYR 4,700
Malaysian palm oil futures fell below MYR 4,700 per tonne, reversing the previous rally as weaker crude oil prices reduced palm oil’s appeal as a biodiesel feedstock. Record-high inventories added pressure, while mixed manufacturing data from China, a major palm oil importer, offered little clarity on the demand outlook. The official PMI showed contraction, contrasting with continued expansion in the private-sector survey. Still, a weaker ringgit and firm exports limited the decline. Cargo surveyors reported a 46.9%–67.7% surge in shipments during October 1–25 from the same period in September, partly driven by pre-Diwali buying from top consumer India. Meanwhile, Malaysia’s Finance Ministry is reportedly reviewing a proposal to suspend crude palm oil export taxes as inventories are expected to exceed 3 million tonnes by year-end amid peak seasonal production. Traders will look to Malaysia's Palm Oil Board’s monthly report due November 10 for further clues on the supply-demand balance.
2026-11-02
Palm Oil Set for First Weekly Loss in Four, Monthly Gain Intact
Malaysian palm oil futures snapped recent declines, with prices hovering near MYR 4,700 per tonne amid gains in rival edible oils and stronger crude oil prices. Markets recovered from a two-week low, as exports remained firm, with cargo surveyors reporting a 46.9%–67.7% surge in shipments during Oct. 1–25 from the same period in Sept., partly driven by pre-Diwali buying in top consumer India. Meanwhile, Malaysia’s Finance Ministry is reportedly reviewing a proposal to suspend crude palm oil export taxes as stockpiles hit a record in Sept. and are expected to top 3 million tonnes by year-end amid peak seasonal production. However, contracts are on track to post their first weekly drop in four, down around 3% so far, weighed by ample inventories. Timely rainfall between Sept. and Nov. also eased El Niño-related risks. Still, futures are on track for a monthly gain of around 1.3%, after a 5.8% decline in Sept. Traders now await China’s official PMI data for further demand signals.
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Palm Oil Slips to 2-Week Low as Bearish Factors Mount
Malaysian palm oil futures fell over 1.5% to near MYR 4,600 per tonne, extending recent losses and hitting their lowest since mid-October. A stronger ringgit weighed on sentiment, alongside weaker Dalian palm oils and Chicago soyoils. Meanwhile, crude oil prices retreated amid renewed Middle East diplomatic efforts, reducing palm oil’s appeal as a biodiesel feedstock. Record-high Malaysian inventories added pressure, while caution grew ahead of China’s official PMI data in the key consuming market. Separately, EU palm oil imports for the 2026/27 season, which began in July, fell 21% yoy to 0.8 million tonnes. Still, expectations of tighter supplies next year due to El Niño-related weather risks and stronger domestic biodiesel demand in top producer Indonesia offered some support. Export demand also stayed firm, with cargo surveyors reporting a 46.9%–67.7% surge in shipments during October 1–25 from the same period in September, partly driven by pre-Diwali buying in top consumer India.
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