FX.co ★ Palm Oil Extends Weakness to Near 5-Month Low

Malaysian palm oil futures declined for the fourth consecutive session, settling close to MYR 4,025 per tonne—marking their lowest point since late June. This decline in sentiment was influenced by a stronger ringgit, which reduced the appeal of exports, coupled with weaker palm oil contracts on the Dalian exchange that exerted additional pressure. Anticipations of reduced shipments further dampened the market outlook as traders awaited cargo surveyor data for the period of November 1–25. Preliminary projections for the first 20 days of the month indicated a month-on-month decline ranging from 14.1% to 20.5%. Adding to the negative sentiment, the Malaysian Palm Oil Board has set a reduced crude palm oil reference price for December, while industry reports revealed that October's output surged by 11.02%, reaching its highest level since August 2015, with stock levels climbing to a six-and-a-half-year peak. Nonetheless, these losses were partially mitigated by optimism that India, the world’s largest consumer, might increase its palm oil imports by approximately 20% in the coming marketing year, driven by more competitive pricing that could enable the tropical oil to reclaim market share.