Malaysian palm oil futures edged higher, holding above MYR 4,750 per tonne after recent declines, supported by strong export performance and improving demand prospects. Cargo surveyor data showed shipments jumping by 58.5%–78.4% during October 1–20 compared with the same period in September, while festival-driven buying from India, a major importer, further underpinned sentiment. Firmer crude oil prices also provided support by boosting palm oil’s appeal as a biodiesel feedstock.
At the same time, Malaysia is weighing a temporary waiver or reduction of its 10% crude palm oil export tax in an effort to draw down record-high inventories and enhance the country’s global price competitiveness. Stocks climbed to an all-time peak of 3.51 million tonnes in September.
Upside, however, remained limited by weaker palm olein futures on the Dalian exchange and lower soyoil prices in Chicago. Seasonal output is also expected to stay elevated in October after six straight months of increases, reinforcing concerns about abundant supply.
