FX.co ★ Palm Oil Extend Losses to Begin the Week

Malaysian palm oil futures are currently trading at approximately MYR 4,400 per tonne, marking the second consecutive decrease and approaching their lowest point in three weeks. The appreciation of the ringgit has exerted downward pressure on prices, while demand from leading buyer India is anticipated to decline following the conclusion of the Diwali festival. Market sentiment has also been unsettled due to ongoing uncertainties regarding global demand and the potential impact of unpredictable weather conditions on production in early 2026. Despite these challenges, strength in competing edible oils from Dalian and Chicago has tempered any further price drops. On an international level, U.S. Treasury Secretary Scott Bessent announced that President Trump and China's Xi Jinping are set to confirm a trade agreement at this week's APEC summit in South Korea. Bessent also noted that China is expected to resume significant purchases of U.S. soybeans for several years, which could bolster global demand for vegetable oils. Furthermore, Indonesia, as the leading producer, has announced plans to implement a 10% bioethanol blend in gasoline by 2027 to decrease reliance on imported fuels.