FX.co ★ Palm Oil Extends Losses to Start the Week

Malaysian palm oil futures experienced a decline for the second consecutive session, dropping below MYR 4,450 per tonne, primarily influenced by weaker soybean oil prices on the Chicago Board of Trade. Market activity was minimal due to the Dalian Commodity Exchange being closed for China's Golden Week holiday, which extends until October 8. The market sentiment further deteriorated following reports that highlighted a 15.9% decline in palm oil imports from India, a key market, to 833,000 metric tons in September—the lowest level since May. It is anticipated that imports may decrease further to approximately 600,000 tons in October as the festive demand reaches its peak mid-month. Additional challenges arose from the uncertainty surrounding the U.S. government shutdown, which continues into its second week. White House economic adviser Kevin Hassett cautioned that layoffs might begin if negotiations remain stagnant. Despite these adverse factors, the decline was moderated by increased exports, with cargo surveyors indicating that Malaysia's exports in September grew between 7.3% and 9.6% compared to August. Furthermore, Reuters predicted a 2.5% reduction in Malaysia's palm oil inventories, bringing them to 2.15 million tons by the end of last month.