Palm Oil Stays Below MYR 4,700

Malaysian palm oil futures extended their decline, remaining below MYR 4,700 per tonne amid weakness in Dalian-traded edible oils. Abundant inventories added pressure, with stocks hitting a record high in September and expected to exceed 3 million tonnes by year-end amid peak seasonal production. Meanwhile, Indonesia, the top producer, lowered its November crude palm oil reference price by 6.1% to USD 978.90 per tonne, cutting combined export duty and levy by around 20% to USD 246.36 per tonne. Caution also prevailed ahead of the Malaysian Palm Oil Board's monthly report due on November 10. Still, a weaker ringgit helped limit losses, while a slight recovery in crude oil prices improved palm oil's appeal as a biodiesel feedstock. On the demand front, exports remained firm, with cargo surveyors reporting a 45.4%—73.5% monthly surge in October shipments, partly driven by pre-Diwali buying from India, the world's largest palm oil importer.