FX.co ★ Palm Oil Futures Steady But Set for Second Weekly Gain

Malaysian palm oil futures remained stable, trading near MYR 4,150 per tonne on Friday afternoon, following significant declines in the previous session. Investors considered the onset of traditionally lower production months against the backdrop of a strengthening ringgit and declining export demand. According to cargo surveyors, Malaysian palm oil exports from November 1st to 20th declined by 14.1% to 20.5% compared to the previous month. Nevertheless, the benchmark contract is poised for a second consecutive weekly gain, currently up approximately 0.5%. This uptick is fueled by forecasts of a nearly 20% increase in palm oil imports by India, the largest buyer, due to competitive pricing, which aids in reclaiming market share. Additionally, Indonesia's scheduled implementation of B50 in the second half of 2026 may tighten global supply. The local industry association anticipates that this could drive prices towards MYR 5,000, while reducing Indonesia’s total exports to 26 million tonnes by 2026, compared with the estimated 31 million tonnes expected this year.