FX.co ★ Palm Oil Extends Losses, Nears 2-Week Low

Malaysian palm oil futures experienced a second consecutive decline on Tuesday, dropping below MYR 4,100 per tonne and reaching their lowest point in nearly two weeks. The market sentiment was negatively impacted by falling prices of competitor soyoil in both the Dalian and Chicago markets. Further pressure came from forecasts of increased inventories, with Reuters anticipating Malaysian stock levels could hit their highest point in six and a half years by the end of November. On the export front, cargo surveyor Intertek reported a significant 19.7% month-on-month decrease in November shipments. Additionally, caution prevailed as markets awaited China's Consumer Price Index (CPI) and Producer Price Index (PPI) data releases, with ongoing deflationary concerns affecting demand outlooks. However, losses were somewhat cushioned by a weaker ringgit and the potential for supply interruptions due to flooding in key production areas. Meanwhile, in leading purchaser India, refiners are said to have canceled approximately 70,000 tonnes of crude soyoil scheduled for December–January delivery, due to high global prices and a depreciating rupee, opting instead for palm oil. Seasonal buying in anticipation of the Lunar New Year and Ramadan provided further support to the market.