FX.co ★ Palm Oil Rises Further

Malaysian palm oil futures rose for a second consecutive session on Thursday, settling around MYR 4,060 per tonne. This uptick was influenced by strong performance in Dalian edible oils and ongoing bargain hunting efforts. The prices have rebounded from a five-month low reached earlier this week, fueled by growing expectations that India, the world's leading purchaser, may increase its imports by approximately 20% in the upcoming marketing year starting in early November, driven by more competitive pricing. In Indonesia, a major supplier, reports indicate that authorities have implemented stricter monitoring of the palm oil industry in response to suspected manipulation of export data aimed at evading levies. This action could potentially reduce short-term shipments and provide limited price support. Nevertheless, supply-side pressures suggest the contract is still on course for a second weekly decline, currently down about 0.2%. Cargo surveyors reported a decrease in Malaysia's exports by 16.4%–18.8% in the first 25 days of November, while October's production rose by 11%, reaching its highest level since August 2015, which has pushed inventories to a six-and-a-half-year high.