Palm Oil Slips Below MYR 4,700

Malaysian palm oil futures fell below MYR 4,700 per tonne, reversing the previous rally as weaker crude oil prices reduced palm oil’s appeal as a biodiesel feedstock. Record-high inventories added pressure, while mixed manufacturing data from China, a major palm oil importer, offered little clarity on the demand outlook. The official PMI showed contraction, contrasting with continued expansion in the private-sector survey. Still, a weaker ringgit and firm exports limited the decline. Cargo surveyors reported a 46.9%—67.7% surge in shipments during October 1—25 from the same period in September, partly driven by pre-Diwali buying from top consumer India. Meanwhile, Malaysia’s Finance Ministry is reportedly reviewing a proposal to suspend crude palm oil export taxes as inventories are expected to exceed 3 million tonnes by year-end amid peak seasonal production. Traders will look to Malaysia's Palm Oil Board’s monthly report due November 10 for further clues on the supply-demand balance.