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28.10.202604:06:12UTC+00Palm Oil Bounces Back After Recent Losses

Malaysian palm oil futures rebounded from recent losses, trading above MYR 4,700 per tonne as bargain hunting set in after prices touched a near two-week low. Support also came from a weaker ringgit and stronger soyoil prices on the Dalian exchange, as well as a recovery in crude oil that enhanced palm oil’s attractiveness as a biodiesel feedstock.

Sentiment was further underpinned by expectations of tighter supplies next year due to El Niño–related weather risks and stronger domestic biodiesel demand in leading producer Indonesia. On the demand front, cargo surveyors reported that exports surged by 46.9%–67.7% in October 1–25 compared with the same period in September, aided in part by festive-driven purchases from India, the world’s largest palm oil importer.

The Malaysian Palm Oil Council anticipates prices will stay above MYR 4,600 in November, supported by potential increases in Indian and Chinese buying amid tightening supplies of rival edible oils. Nonetheless, record-high Malaysian stockpiles continued to limit further price gains.

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