FX.co ★ Palm Oil Sustains Upside Momentum

Malaysian palm oil futures surpassed MYR 4,200 per tonne on Wednesday, marking a fifth consecutive session of gains amid stronger performances in rival oils on the Dalian and Chicago exchanges. The market continued to recover from a four-month low experienced last week, buoyed by Statistics Malaysia data revealing a 23.8% year-on-year increase in palm oil exports for October. Anticipations for stronger prices were further fueled by concerns over supply due to Indonesia's stricter land-seizure policies and plans to advance the B50 biodiesel mandate, prompting analysts to caution that stricter regulations and heightened domestic demand could limit forthcoming exports. However, these gains were partially offset by the Malaysian Palm Oil Board announcing a lower crude palm oil reference price for December. In India, the largest consumer globally, palm oil imports in October fell to a five-month low as buyers redirected their preferences toward soybean oil, resulting in a 16% decline in 2024/25 imports to a five-year low of 7.56 million tonnes. Meanwhile, EU imports have decreased by 18%, totaling 1.08 million tonnes thus far in the 2025/26 season.