FX.co ★ Palm Oil Heads for Weekly Loss Before Long Weekend

Malaysian palm oil futures declined below MYR 4,520 per tonne on Friday, halting a two-day upward trend due to a stronger ringgit and weak performance in competing oils from Dalian and Chicago which affected traders' outlook. Trading was subdued as markets braced for a holiday on Monday. Over the week, this benchmark fell by 0.7%, undoing the gains from the preceding two weeks as tensions in U.S.–China trade relations resurfaced. Reports suggest that Washington is contemplating new restrictions on trade activities, including those involving cooking oil, leading to concerns over reduced Chinese demand for palm oil. However, losses were somewhat mitigated by indications of robust exports, with cargo surveyors indicating an increase in Malaysia’s palm oil exports by 12.3% to 16.2% from October 1–15 compared to September. Additionally, India, a major buyer, raised the base import prices for all vegetable oils in its latest bi-weekly update. In a related development, Indonesia, the largest global producer, plans to mandate that international flights from Jakarta and Bali incorporate a 1% aviation fuel blend starting in 2026, which could potentially increase domestic palm oil consumption.