FX.co ★ Palm Oil Set for Fifth Weekly Slide

Malaysian palm oil futures declined to below MYR 4,120 per tonne, continuing the downward trend from the previous day. This decrease was driven by weaker Dalian palm olein prices and reduced demand from major consumers such as India and China. Prices remain at a four-month low and are on track for a fifth consecutive weekly decline, amid expectations of increased production. The Malaysian Palm Oil Board revealed that October production rose by 11.02% compared to the previous month, reaching its highest level since August 2015, while end-of-October stock levels hit a 6-1/2-year peak. Additionally, China's sluggish economic performance, as seen in declining industrial output and retail sales, further applied downward pressure. Nevertheless, the slightly depreciated ringgit helped mitigate losses by enhancing export competitiveness. On a different note, Indonesia, the leading producer, plans to open 600,000 hectares of new plantation land, the first such expansion since the moratorium ended four years ago, which could lead to a rise in global supply. The resolution of the U.S. government shutdown also provided some relief to global markets, including palm oil.