Palm Oil Heads for Steepest Weekly Loss in Near 2 Years

Malaysian palm oil futures extended their decline, hovering below MYR 4,350 per tonne at their lowest level since March. Prices are poised for their deepest weekly drop in almost two years, pressured by plunging rival edible oil prices and record-high inventories. A sharp weekly drop in crude oil prices also weighed on sentiment, reducing palm oil's appeal as a biodiesel feedstock amid easing concerns over Middle East supply disruptions. Meanwhile, regional competition intensified as top supplier Indonesia cut its Nov. crude palm oil reference price by over 6% and lowered its export levy, making its supplies more competitive. Uncertainty over potential changes to Malaysia's CPO export tax further dampened sentiment. Still, the downside was partly cushioned by solid exports, with Oct. shipments surging 45.4%—73.5% from Sept. Palm oil imports by key buyer India also climbed to a 14-month high ahead of Diwali. Traders now await the Malaysian Palm Oil Board's monthly report, due Nov. 10.