FX.co ★ Palm Oil Plunges to 12-Week Low

Malaysian palm oil futures have dropped approximately 1.7%, settling below MYR 4,250 per tonne. This marks a continuation of declines for the fourth consecutive session, bringing prices to their lowest point since early August. The downturn can be attributed to a stronger ringgit coupled with the weakening of competing vegetable oils traded in Dalian and Chicago markets. Moreover, demand outlooks have dimmed as winter approaches, a season when palm oil consumption notably decreases in major markets like India and China. On the export side, data from cargo surveyors indicates that shipments from October 1 to 25 have decreased by about 0.3% to 0.4% compared to the previous month, underscoring the anticipation of reduced demand. Nevertheless, the decline in prices has been somewhat checked by U.S. President Trump's optimistic comments about a potential trade agreement with Chinese leader Xi Jinping, expected in their upcoming discussions. In other developments, palm oil stock levels in Indonesia, the leading producer, fell by 1% in August to 2.54 million metric tons, as reported by the Indonesian Palm Oil Association (GAPKI).