FX.co ★ Palm Oil Holds Two-Session Rise

Malaysian palm oil futures experienced an upswing for the second consecutive session on Wednesday, maintaining a position above MYR 4,150 per tonne. This increase was buoyed by strengthening edible oil prices on the Chicago and Dalian exchanges. Additionally, expectations of heightened demand in anticipation of the Lunar New Year and Ramadan in early 2026 further contributed to the positive trend. In India, the largest consumer, November saw a rise in imports as the decline in palm oil prices encouraged refiners to opt for it over the more expensive soyoil and sunflower oil. However, gains were somewhat restrained by a Reuters forecast indicating that inventories likely reached a 6.5-year high in November, underscoring a plentiful supply. Export challenges also added pressure, with Intertek reporting a 19.7% month-on-month decline in shipments. Attention also shifted to operational risks due to a land dispute in Terengganu state, which authorities cautioned might pose a threat to output; however, traders assessed the immediate impact as limited. Meanwhile, in Indonesia, the largest global producer, industry officials commented that recent floods and cyclones in Sumatra did not result in significant output losses, thereby tempering expectations for supply-driven support.