FX.co ★ Palm Oil Begins November with Sharp Losses

Malaysian palm oil futures have declined by approximately 1.5%, dropping to below MYR 4,200 per tonne, and reaching a 12-week low as losses continue since mid-October. This significant decrease is attributed to the weakened performance of rival edible oils on the Dalian exchange, coupled with growing concerns over global demand and unpredictable weather conditions that could impact production in early 2026. In the short term, demand forecasts have weakened with the onset of winter, a period when consumption typically reduces in major markets like India and China. Despite this, data from cargo surveys indicate a rise in Malaysian palm oil product exports, increasing between 4.3% and 5.2% in October. However, traders anticipate a slowdown in growth for the forthcoming months. Furthermore, private survey data highlighted a reduction in factory activity in October, adding to the negative outlook. Concurrently, Indonesia's statistics agency reported that the country exported 17.58 million tons of crude and refined palm oil during January to September, marking an 11.6% increase compared to the previous year, which highlights the plentiful global supply.