Malaysian palm oil futures extended their slide, trading below MYR 4,700 per tonne amid broad weakness in edible oils on the Dalian exchange. Ample supplies continued to weigh on prices, with domestic inventories hitting a record high in September and projected to surpass 3 million tonnes by year-end as seasonal output peaks.
Adding to the bearish tone, Indonesia — the world’s largest producer — cut its November crude palm oil reference price by 6.1% to USD 978.90 per tonne, resulting in a roughly 20% reduction in the combined export duty and levy to USD 246.36 per tonne. Market sentiment also remained cautious ahead of the Malaysian Palm Oil Board’s monthly report scheduled for November 10.
However, a weaker ringgit helped cushion the downside, while a modest rebound in crude oil prices bolstered palm oil’s attractiveness as a biodiesel feedstock. On the demand side, exports stayed robust, with cargo surveyors reporting a 45.4%–73.5% month-on-month jump in October shipments, supported in part by pre-Diwali purchases from India, the world’s largest palm oil importer.
