FX.co ★ Palm Oil Extends Gains

Malaysian palm oil futures experienced an approximate 1% increase, surpassing MYR 4,400 per tonne, marking an upward trend for the second consecutive day. This rise was supported by firmer Chicago soyoil and crude oil prices. Additionally, market sentiment was bolstered by evidence of increased exports; cargo surveyor AmSpec Agri reported a 7.3% rise in September shipments. The Malaysian Palm Oil Board anticipates that year-end stock levels could decrease to 1.7 million tonnes, attributing this to seasonal production declines and a surge in festive demand. In India, a major buyer, the government has elevated base import prices for all vegetable oils to align with the higher global benchmarks, forecasting record imports of 17.1 million tonnes for the 2025/26 period. Indonesia, the foremost palm oil producer, reported exporting 16.2 million tonnes of crude and refined palm oil from January to August, reflecting a 13.6% year-over-year increase. However, a stronger ringgit limited additional gains. Concurrently, concerns surrounding a potential U.S. government shutdown exerted pressure on markets. In China, the Dalian Exchange is on hiatus owing to the Golden Week break, with trading activities set to recommence on October 9.