Palm Oil Set for 3rd Straight Weekly Gain
Malaysian palm oil futures extended gains, holding above MYR 4,800 per tonne amid strength in rival edible oils and a tightening supply outlook linked to severe El Niño conditions and Indonesia's upcoming B50 biodiesel mandate. Robust exports also supported prices, with cargo surveyors reporting a 58.5%—78.4% surge in shipments during Oct. 1—20 from the same period in Sept. Festival-related buying from India, the world's largest palm oil importer, has been a key demand driver. The Malaysian Palm Oil Council expects prices to stay above MYR 4,600 in Nov., noting that India and China may increase their reliance on palm oil amid anticipated supply constraints in sunflower and soybean oils. Elevated energy prices further supported prices by strengthening biodiesel demand prospects. However, gains were capped by the risk of weaker food-sector consumption of vegetable oils amid persistent inflation. For the week, futures were on track for a third straight weekly rise, up nearly 1% so far.
Malaysian palm oil futures extended gains, holding above MYR 4,800 per tonne amid strength in rival edible oils and a tightening supply outlook linked to severe El Niño conditions and Indonesia's upcoming B50 biodiesel mandate. Robust exports also supported prices, with cargo surveyors reporting a 58.5%—78.4% surge in shipments during Oct. 1—20 from the same period in Sept. Festival-related buying from India, the world's largest palm oil importer, has been a key demand driver.
The Malaysian Palm Oil Council expects prices to stay above MYR 4,600 in Nov., noting that India and China may increase their reliance on palm oil amid anticipated supply constraints in sunflower and soybean oils. Elevated energy prices further supported prices by strengthening biodiesel demand prospects. However, gains were capped by the risk of weaker food-sector consumption of vegetable oils amid persistent inflation. For the week, futures were on track for a third straight weekly rise, up nearly 1% so far.