Palm OIl Stays at 3-Week High on Export Strength

Malaysian palm oil futures held above MYR 4,750 per tonne, hovering at a three-week peak amid firmer edible oils on China’s Dalian exchange and robust export demand. Cargo surveyors reported a 43.2%—58.3% month-on-month surge in Malaysian palm oil shipments during the first half of October, while festival-driven buying from India, the world’s largest palm oil importer, further supported sentiment. Indonesia also raised its October crude palm oil reference price by 3.44% to USD 1,042.15 per tonne. Supply concerns added support, as Indonesia’s B50 biodiesel mandate and severe El Niño conditions threatened to disrupt supply and logistics. In China, another major consumer, stronger-than-expected Q3 growth and resilient September activity bolstered demand prospects. Meanwhile, oil prices eased but remained elevated amid Middle East tensions, offering some support through the biodiesel channel. However, gains were tempered by record-high inventories of 3.51 million tonnes in September.