Palm Oil Hovers Near MYR 4,500 as Bearish Factors Weigh
Malaysian palm oil futures remained under strain, trading around MYR 4,500 per tonne and touching an over one-month low. Sentiment weakened amid losses in Dalian and Chicago edible oil markets and concerns over ample supplies, with stocks hitting a record high in September and expected to top 3 million tonnes by year-end amid peak seasonal production. Competitive pressure also mounted after Indonesia cut its November CPO reference price by 6.07% to USD978.90 per tonne and lowered its export levy, making Malaysian palm oil less competitive. Meanwhile, easing crude oil prices amid hopes of progress in US-Iran peace talks reduced palm oil's appeal as a biodiesel feedstock. Caution also prevailed ahead of MPOB's monthly report on November 10. However, a weaker ringgit and robust demand offered some support, with October shipments jumping 45.4%—73.5% from September. In India, the largest buyer, palm oil imports stood at a 14-month high in October, boosted by festive demand ahead of Diwali.
Malaysian palm oil futures remained under strain, trading around MYR 4,500 per tonne and touching an over one-month low. Sentiment weakened amid losses in Dalian and Chicago edible oil markets and concerns over ample supplies, with stocks hitting a record high in September and expected to top 3 million tonnes by year-end amid peak seasonal production. Competitive pressure also mounted after Indonesia cut its November CPO reference price by 6.07% to USD978.90 per tonne and lowered its export levy, making Malaysian palm oil less competitive. Meanwhile, easing crude oil prices amid hopes of progress in US-Iran peace talks reduced palm oil's appeal as a biodiesel feedstock.
Caution also prevailed ahead of MPOB's monthly report on November 10. However, a weaker ringgit and robust demand offered some support, with October shipments jumping 45.4%—73.5% from September. In India, the largest buyer, palm oil imports stood at a 14-month high in October, boosted by festive demand ahead of Diwali.