Malaysian palm oil futures extended losses, trading below MYR 4,500 per tonne and touching their lowest level since June. Sentiment was pressured by a stronger ringgit and weakness across rival edible oils on the Dalian and Chicago exchanges, as well as expectations that October inventories rose to a new record following September’s peak. Softer crude oil prices further dampened demand prospects, with a Democratic sweep in the US midterm elections heightening expectations that President Trump would face increased pressure to resolve the Iran conflict, thereby reducing palm oil’s appeal as a biodiesel feedstock.
Competitive headwinds intensified after Indonesia cut its November CPO reference price by 6.07% to USD 978.90 per tonne and lowered its export levy, enhancing the price competitiveness of Indonesian supplies. However, the downside was partly limited by robust demand: October exports jumped by 45.4%–73.5% compared with September. At the same time, palm oil imports by India, the world’s largest buyer, climbed to a 14-month high ahead of the Diwali festival.
