Palm Oil Dips Below MYR 4,800 Despite Strong Exports

Malaysian palm oil futures fell below MYR 4,800 per tonne, reversing recent gains amid weakness in Dalian palm oil and Chicago soyoils. Lower crude oil prices added pressure by reducing the relative appeal of palm oil for biodiesel production, while softer food-sector demand amid persistent inflationary pressures also weighed on sentiment. However, losses were limited by robust exports, with cargo surveyors reporting a 58.5%—78.4% surge in shipments during Oct. 1—20 from the corresponding period in September. Festival-related buying from India, the world's largest palm oil importer, provided additional support. The Malaysian Palm Oil Council expects prices to remain above MYR 4,600 in November, as India and China may turn to palm oil amid anticipated tightening sunflower and soybean oil supplies. Longer term, Indonesia's upcoming B50 biodiesel mandate is expected to underpin demand, given its potential to increase consumption in the top-producing country.