FX.co ★ Palm Oil Retreats After 5-Day Winning Streak

Malaysian palm oil futures experienced a decline of approximately 1.5%, falling below MYR 4,200 per tonne on Thursday. This downturn halted a five-day upward trend, influenced by weaknesses observed in competing oils on the Dalian and Chicago exchanges. Additionally, market sentiment was dampened when the Malaysian Palm Oil Board announced a lower reference price for crude palm oil for December. In India, the largest consumer, October imports of palm oil reached a five-month low as purchasers opted for soybean oil, resulting in a projected decline of 16% in 2024/25 imports, totaling a five-year low of 7.56 million tonnes. Export data revealed early indications of a slowdown, with cargo surveyor data indicating that Malaysian palm oil product exports declined by 10% to 15.5% from November 1 to 15, compared to the previous month. Despite this, prices have risen by 0.9% this week, marking a second consecutive week of gains. This increase is underpinned by a weakened ringgit and concerns about supply limitations due to stricter land-seizure regulations and an anticipated B50 biodiesel mandate in Indonesia, the world's largest producer. Analysts suggest this could potentially restrict future exports.