Malaysian palm oil futures consolidated recent gains, trading near MYR 4,500 per tonne, buoyed by a weaker ringgit and stronger edible oil prices on the Dalian exchange. Market sentiment was further supported by a smaller-than-expected inventory build: October stocks climbed to a record 3.62 million metric tons, yet remained below consensus forecasts of 3.75 million tons.
At the same time, seasonal output declines are anticipated across Southeast Asia as oil palm trees enter their lower-yield phase in November. Still, upside momentum was capped by concerns over softer demand. Cargo surveyor data indicated that Malaysian palm oil exports for November 1–10 fell by about 1.9–2.3% compared with the same period in October.
Additional pressure came from weaker crude oil prices, which dampened overall risk appetite and reduced the attractiveness of palm oil as a feedstock for biodiesel. MPOB’s latest monthly figures also showed that production rose for a fifth straight month in October, adding to the supply side headwinds.
Even so, futures are up roughly 4.5% so far this week and are on track for their first weekly advance in three weeks.
