Palm Oil Bounces Back After Recent Losses

Malaysian palm oil futures rebounded from recent declines, hovering above MYR 4,700 per tonne as bargain hunting emerged after prices hit a near two-week low. A weaker ringgit and firmer soyoil prices on the Dalian market also lent support, alongside a recovery in crude oil prices that improved palm oil's appeal as a biodiesel feedstock. Expectations of dwindling supplies next year due to El Niño-related weather risks and stronger domestic biodiesel demand in top producer Indonesia further boosted sentiment. On the demand side, cargo surveyors reported a 46.9%—67.7% surge in shipments during October 1—25 from the same period in September, partly supported by festive buying from India, the world's largest palm oil importer. The Malaysian Palm Oil Council expects prices to remain above MYR 4,600 in November, lifted by potential increases in Indian and Chinese purchases amid tightening supplies of competing edible oils. However, record-high Malaysian inventories continued to cap gains.