Malaysian palm oil futures extended their advance, trading above MYR 4,800 per tonne, supported by strength in rival vegetable oils and a tightening supply outlook tied to severe El Niño conditions and Indonesia’s forthcoming B50 biodiesel mandate. Prices also drew support from strong exports, with cargo surveyors reporting a 58.5%–78.4% jump in shipments during Oct. 1–20 compared with the same period in September. Festival-related buying from India, the world’s largest palm oil importer, has been a key driver of demand.
The Malaysian Palm Oil Council expects prices to remain above MYR 4,600 in November, noting that India and China are likely to increase their reliance on palm oil amid anticipated supply constraints in sunflower and soybean oils. Higher energy prices have further underpinned the market by bolstering the outlook for biodiesel demand. However, upside momentum has been partly capped by softer food-sector demand amid persistent inflation pressures. For the week, futures were on track for a third consecutive weekly gain, up nearly 1% so far.
