Palm Oil Edges Higher as Strong Exports Offset Supply Concerns

Malaysian palm oil futures inched up, hovering above MYR 4,750 per tonne after recent losses, supported by robust exports and stronger demand prospects. Cargo surveyors reported a 58.5%—78.4% surge in shipments during October 1—20 from the same period in September, while festival-related demand from India, a key importer, further bolstered sentiment. Higher crude oil prices also lent support by enhancing palm oil’s competitiveness as a biodiesel feedstock. Meanwhile, Malaysia is considering a temporary waiver or reduction of its 10% crude palm oil export tax to help clear record-high inventories and improve global price competitiveness. Stocks reached an all-time high of 3.51 million tonnes in September. However, gains were capped by weaker palm olein futures in Dalian and lower soyoil prices in Chicago. Seasonal production is also expected to remain elevated in October following six consecutive monthly increases, reinforcing concerns over ample supplies.