Palm Oil Set for First Weekly Advance in Three Weeks

Malaysian palm oil futures held recent gains, hovering near MYR 4,500 per tonne, supported by a weaker ringgit and firmer edible oils on the Dalian markets. Sentiment also benefited from a smaller-than-expected stock build, with October inventories reaching a record 3.62 million metric tons, but below market estimates of 3.75 million tons. Meanwhile, seasonal production declines across Southeast Asia are expected as oil palm trees enter their lower-yield period in November. However, gains were limited by expectations of softer demand, with cargo surveyors reporting a 1.9–2.3% decline in Malaysian palm oil shipments during November 1–10 from the same period in October. Lower crude oil prices also weighed on risk appetite, reducing palm oil's appeal as a biodiesel feedstock. Separately, MPOB monthly data showed production rose for a fifth consecutive month in October. Despite these headwinds, futures are up around 4.5% this week, heading for their first weekly gain in three weeks.

Malaysian palm oil futures extended gains to trade near MYR 4,450 per tonne, supported by a weaker ringgit and firmer rival edible oils on the Dalian markets. Prices moved further away from their lowest level since early March, as bargain hunting persisted following a smaller-than-expected stock build. October inventories rose to a record 3.62 million metric tons, but below market estimates of 3.75 million tons. In top grower Indonesia, exports of palm oil products hit 33.8 million tons in January–October, up 6% yoy. Meanwhile, seasonal production declines are expected in Southeast Asia, as palm trees enter their low-yield period from November, with potential El Niño effects posing an additional supply risk. However, gains were limited by signs of softer demand in November, as cargo surveyors noted shipments fell 1.9–2.3% in the first ten days of the month from October. Meanwhile, Malaysian Palm Oil Board monthly data showed production rose for a fifth straight month in October.

Malaysian palm oil futures rallied, hovering near MYR 4,350 per tonne and snapping recent losses as bargain hunting emerged after prices hit their lowest level since early March. Strength in rival edible oils and firmer crude oil prices also boosted risk appetite. Meanwhile, seasonal production declines are expected as palm trees enter their low-yield period from November, with potential El Niño effects posing an additional supply risk. Indonesia's push for higher biodiesel mandates is also projected to absorb substantial volumes, providing medium-to-long-term price support. However, gains were capped by signs of weaker exports, with Intertek Testing Services reporting a 1.9% mom drop in palm oil shipments during the November 1-10 period, following October's surge. Meanwhile, monthly data from the Malaysian Palm Oil Board showed inventories hit a fresh record of 3.62 million tonnes in October, marking a seventh consecutive monthly increase, while production rose for a fifth month.