FX.co ★ Palm Oil Continues Bearish Run

Malaysian palm oil futures dipped to approximately MYR 4,450 per tonne on Tuesday, marking a decline for the fourth consecutive session. This downturn was influenced by a stronger ringgit and weaker performance in Dalian oils. Market sentiment was further unsettled by renewed trade tensions between the U.S. and China, following statements from U.S. Trade Representative Jamieson Greer indicating uncertainty around a meeting later this month between President Trump and Xi Jinping. Additionally, reports suggested that Washington might impose restrictions on certain trade relations with Beijing, including matters related to cooking oil, accusing China of intentionally reducing its soybean imports from the U.S. In contrast, Malaysia announced a reduction in its November crude palm oil reference price while maintaining the export duty at 10%. Some of the losses were mitigated by news that Indonesia, the largest producer globally, might regulate crude palm oil exports to ensure domestic biodiesel supply. On the supply front, data from the Malaysian Palm Oil Board revealed a 0.73% decrease in Malaysia's palm oil production in September, amounting to 1.84 million tonnes, marking the first drop in three months.