FX.co ★ Palm Oil Set to Log Second Straight Weekly Gain

Malaysian palm oil futures have climbed to approximately MYR 4,140 per tonne, bouncing back after losses over the last two sessions. This upward movement is bolstered by the robust performance of vegetable oils on the Dalian and Chicago exchanges. The market is positioned for its second consecutive weekly increase, gaining around 0.7%. This growth is largely attributed to anticipated increased palm oil purchases by India, following reports that refiners have cancelled approximately 70,000 tons of crude soyoil orders intended for delivery between December and January. The global rise in prices, combined with a depreciating rupee, has rendered imported soyoil less competitive, leading Indian buyers to opt for palm oil, consequently boosting demand. Additionally, expectations of elevated seasonal demand ahead of the Lunar New Year and Ramadan in 2026 have further fueled investor interest. However, the potential gains are tempered by forecasts from Reuters suggesting Malaysian palm oil inventories could reach their highest level in six and a half years by the end of November. This, along with reduced Indonesian export taxes for December and weak shipment volumes as evidenced by a 19.7% month-on-month decline in November exports reported by Intertek, could limit potential market increases.