FX.co ★ Palm Oil Snaps Two-Session Losing Streak

Malaysian palm oil futures experienced a modest rise, settling at approximately MYR 4,450 per tonne after enduring two consecutive losses. This increase was bolstered by stronger performances from competing oils on the Chicago exchange. In September, export figures showed significant growth, with cargo surveyors indicating a 7.3–9.6% rise in shipments compared to August. As for stockpiles, Reuters estimated a 2.5% decrease in Malaysia's reserves, bringing them down to 2.15 million tons last month. Nonetheless, the potential for further gains was capped by a strengthened ringgit and the closure of the Dalian market until October 8, due to the Golden Week holiday. Market participants are also anticipating the upcoming data from the Malaysian Palm Oil Board, set to be released later this week. In India, the largest consumer of palm oil globally, purchases declined by 15.9% in September, dropping to 833,000 tons, the lowest level since May. Demand is expected to decrease further, potentially reaching approximately 600,000 tons in October, as the seasonal festive purchasing reaches its peak mid-month. On the international stage, the ongoing U.S. government shutdown, now in its second week, continues to inject uncertainty into global markets, including the palm oil sector.