Palm Oil Nears MYR 4,800 as Profit-Taking Offsets Demand

Malaysian palm oil futures edged lower towards MYR 4,800 per tonne as traders took profits after prices approached a four-week high. Sentiment was also dampened by record inventories of 3.51 million tonnes in September, while seasonal production is expected to stay elevated in October after six consecutive monthly rises. However, losses were limited by firmer edible oil prices on the Dalian and Chicago markets. Exports offered support, with cargo surveyors reporting a 43.2%—58.3% mom surge in palm oil shipments during the first half of October. Festival-related demand from India, a key importer, further lifted risk appetite. Meanwhile, Indonesia raised its October crude palm oil reference price to USD 1,042.15 per tonne, while rising crude oil prices enhanced palm oil’s competitiveness as a biodiesel feedstock. Traders now monitor Malaysia’s consideration of a waiver or reduction in its crude palm oil export tax, which could improve its competitiveness against Indonesian supplies.