FX.co ★ Palm Oil Heads for 4th Consecutive Weekly Loss

Malaysian palm oil futures declined by nearly 1% on Friday, settling below MYR 4,120 per tonne. This drop erased the previous session’s gains, marking the lowest level in four months, influenced by a stronger ringgit and a decline in rival oils traded on the Dalian and Chicago exchanges. The commodity is poised for a fourth consecutive week of decline, having decreased approximately 2.3% thus far, as traders remain wary of anticipated increases in output in the upcoming weeks. In India, the largest purchaser, market confidence was further shaken by predictions of a surge in rapeseed oil supply following a record planting season this year. Additionally, Reuters estimated that Malaysia’s palm oil stockpiles rose by 3.5% in October, reaching 2.44 million tonnes, the highest since October 2023, as the market awaits the official figures from the Palm Oil Board on Monday. Weaker trade data from China, a significant importer, also dampened the demand outlook, with a decline in exports and a sharp slowdown in import growth. Nevertheless, these losses were partially mitigated by stronger export forecasts, as cargo surveyors reported an increase in shipments ranging from 4.3% to 5.2%.