Palm Oil Set for First Weekly Loss in Four, Monthly Gain Intact

Malaysian palm oil futures snapped recent declines, with prices hovering near MYR 4,700 per tonne amid gains in rival edible oils and stronger crude oil prices. Markets recovered from a two-week low, as exports remained firm, with cargo surveyors reporting a 46.9%—67.7% surge in shipments during Oct. 1—25 from the same period in Sept., partly driven by pre-Diwali buying in top consumer India. Meanwhile, Malaysia’s Finance Ministry is reportedly reviewing a proposal to suspend crude palm oil export taxes as stockpiles hit a record in Sept. and are expected to top 3 million tonnes by year-end amid peak seasonal production. However, contracts are on track to post their first weekly drop in four, down around 3% so far, weighed by ample inventories. Timely rainfall between Sept. and Nov. also eased El Niño-related risks. Still, futures are on track for a monthly gain of around 1.3%, after a 5.8% decline in Sept. Traders now await China’s official PMI data for further demand signals.