Malaysian palm oil futures extended their decline, slipping below MYR 4,150 per tonne to the lowest level since March, as markets absorbed the latest October figures from the Malaysian Palm Oil Board (MPOB). Inventories climbed to a record 3.62 million tonnes, their seventh consecutive monthly increase, while output rose for a fifth straight month, up 1.74% month-on-month to 2.15 million tonnes.
Additional downward pressure came from weaker crude oil prices, which dampened palm oil’s attractiveness as a biodiesel feedstock, after U.S. President Trump indicated that further military strikes on Iran were unlikely. Competitive pressure in the region also intensified, as Indonesia reduced its November CPO reference price by more than 6% and cut its export levy, making Indonesian supplies more price-competitive.
However, the losses were partially contained by MPOB data showing a 55.8% month-on-month rebound in exports to 1.71 million tonnes, the highest level in a year. The export recovery was underpinned by stronger demand from India, where palm oil imports reached a 14-month high in October ahead of the Diwali festival.
