Malaysian palm oil futures held recent gains, hovering near MYR 4,500 per tonne, supported by a weaker ringgit and firmer edible oils on the Dalian markets. Sentiment also benefited from a smaller-than-expected stock build, with October inventories reaching a record 3.62 million metric tons, but below market estimates of 3.75 million tons. Meanwhile, seasonal production declines across Southeast Asia are expected as oil palm trees enter their lower-yield period in November. However, gains were tempered by expectations of softer demand, with cargo surveyors reporting a 1.9–2.3% decline in Malaysian palm oil shipments during November 1–10 from the same period in October. Lower crude oil prices also weighed on risk appetite, reducing palm oil’s appeal as a biodiesel feedstock. Meanwhile, MPOB monthly data showed production rose for a fifth consecutive month in October. Despite these headwinds, futures are up around 4.5% this week, heading for their first weekly gain in three weeks.
Palm Oil Set for First Weekly Advance in Three Weeks
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