FX.co ★ Palm Oil Rises After Hitting 4-1/2-Month Low

Malaysian palm oil futures experienced a rise to approximately MYR 4,080 per tonne on Monday, after a significant decline in the previous two sessions. Traders took advantage of the lower prices, prompting a recovery from last week's 4.5-month low. The uplift in sentiment was further supported by stronger prices in competitive oils on the Chicago exchange and reports indicating increased Chinese imports from the U.S. In India, which is the largest importer, expectations are for palm oil imports to surge by about 20% in the new marketing year, thanks to competitive pricing that is helping the tropical oil regain its market share. Looking forward, Indonesia, the world's largest producer, is planning to introduce B50 in the second half of 2026, which could potentially tighten the global supply. The domestic industry projects prices to possibly reach MYR 5,000, as Indonesia's exports are anticipated to decrease to 26 million tonnes in 2026, down from an estimated 31 million tonnes this year. Nonetheless, the potential gains were capped by a weakening in export activity, with cargo surveyors estimating a decrease in Malaysian shipments by 14.1% to 20.5% from the previous month for the period of November 1–20.