Palm Oil Holds Above MYR 4,700 Despite Record Stocks

Malaysian palm oil futures stayed firm above MYR?4,700 per tonne, extending their upside momentum as strength in China’s Dalian edible oils and higher crude prices boosted palm’s competitiveness in biodiesel. Export signals were also upbeat, with cargo surveyors estimating October?1—10 exports jumped 33.5%—37.7% from the same period in September, while festive buying from top buyer India and firmer trading activity in China during September added support. Yet sentiment was checked by bearish monthly data from the Malaysian Palm Oil Board. September inventories surged 24.5% mom to a record 3.51?million tonnes, the sixth monthly rise in a row. Output climbed 16.5% to 2.12?million tonnes, the highest since August?2015, while exports fell 12.1% to 1.12?million tonnes, marking a second month of decline. Record-high stocks, stronger output, and weaker shipments underscored supply pressure, hinting that despite firmer near-term demand, further price gains may be capped by fundamentals.