Malaysian palm oil futures rebounded, ending a recent losing streak and holding near MYR 4,700 per tonne, supported by strength in rival edible oils and higher crude oil prices. The market recovered from a two-week low as export demand remained firm: cargo surveyors reported a 46.9%–67.7% jump in shipments during Oct. 1–25 compared with the same period in Sept., partly driven by pre-Diwali buying from major consumer India.
At the same time, Malaysia’s Finance Ministry is reportedly reviewing a proposal to suspend crude palm oil export taxes, as inventories reached a record high in Sept. and are projected to exceed 3 million tonnes by year-end amid peak seasonal output. Even so, futures are still set for their first weekly loss in four, down about 3% so far, pressured by ample stockpiles. Well-timed rainfall between Sept. and Nov. has also eased concerns about El Niño-related supply risks.
Despite the weekly decline, palm oil futures are on track for a monthly gain of around 1.3%, following a 5.8% drop in Sept. Traders are now watching China’s upcoming official PMI data for further clues on demand prospects.
