FX.co ★ Palm Oil Slides to Start the Week

Malaysian palm oil futures declined by over 1% to dip below MYR 4,100 per tonne on Monday. This downturn reversed the gains from the previous trading session, primarily influenced by the ringgit's recent appreciation and weaker performances in the Dalian and Chicago soyoil futures markets as concerns escalated over the slow pace of Chinese soybean purchases from the U.S. Furthermore, additional downward pressure stemmed from indications of increasing Malaysian stock levels, with Reuters forecasting that these could hit a 6-1/2-year peak by the end of November, compounded by Indonesia's lowered export taxes for December. The sentiment was also dampened by sluggish export activity; Intertek reported a 19.7% month-on-month decline in November exports. Nevertheless, the extent of losses was curtailed by robust trade data from China, a critical buyer, where exports showed a rebound, and imports picked up pace. Additionally, demand prospects improved in India, as refiners reportedly canceled approximately 70,000 tons of crude soyoil scheduled for delivery in December and January, driven by rising global prices and a weaker rupee, thereby enhancing palm oil's competitiveness. The traditional upsurge in purchasing before the Lunar New Year and Ramadan in 2026 provided further market support.