FX.co ★ Palm Oil Extends Gains

Malaysian palm oil futures remained close to MYR 4,500 per tonne, marking a rise in the market for the second consecutive session. This increase is attributed to stronger performance in competing edible oils on the Dalian and Chicago exchanges, alongside a recovery in crude oil prices. Market sentiment received a boost from indicators of robust demand, as cargo surveyors reported that Malaysian palm oil product exports between October 1st and 15th surged by 12.3% to 16.2% compared to September. The overall market outlook improved following U.S. Treasury Secretary Bessent's indication of a potential extension on the pause of import duties on Chinese goods, contingent upon Beijing abandoning plans for new export control measures on critical materials; this development alleviates trade tensions. Further support was provided by Indonesia, the leading producer, as it aims to regulate crude palm oil exports to ensure supply for its biodiesel initiatives. However, the gains were somewhat restrained by a stronger ringgit. Concurrently, palm oil purchases by India, the largest importer, dropped to their lowest level since May, as refiners opted for more economical soyoil, as reported by the Solvent Extractors’ Association of India.