Palm Oil Rises Further on Bargain Hunting, Softer Stock Build

Malaysian palm oil futures extended gains to trade near MYR 4,450 per tonne, supported by a weaker ringgit and firmer rival edible oils on the Dalian markets. Prices moved further away from their lowest level since early March, as bargain hunting persisted following a smaller-than-expected stock build. October inventories rose to a record 3.62 million metric tons, but below market estimates of 3.75 million tons. In top grower Indonesia, exports of palm oil products hit 33.8 million tons in January—October, up 6% yoy. Meanwhile, seasonal production declines are expected in Southeast Asia, as palm trees enter their low-yield period from November, with potential El Niño effects posing an additional supply risk. However, gains were limited by signs of softer demand in November, as cargo surveyors noted shipments fell 1.9—2.3% in the first ten days of the month from October. Meanwhile, Malaysian Palm Oil Board monthly data showed production rose for a fifth straight month in October.