FX.co ★ Palm Oil Hits Lowest Since June Amid Mounting Pressure

Malaysian palm oil futures extended losses, trading below MYR 4,500 per tonne and touching their lowest level since June. Sentiment was pressured by a stronger ringgit and weakness across rival edible oils on the Dalian and Chicago exchanges, as well as expectations that October inventories rose to a new record following September’s peak. Softer crude oil prices further dampened demand prospects, with a Democratic sweep in the US midterm elections heightening expectations that President Trump would face increased pressure to resolve the Iran conflict, thereby reducing palm oil’s appeal as a biodiesel feedstock.

Competitive headwinds intensified after Indonesia cut its November CPO reference price by 6.07% to USD 978.90 per tonne and lowered its export levy, enhancing the price competitiveness of Indonesian supplies. However, the downside was partly limited by robust demand: October exports jumped by 45.4%–73.5% compared with September. At the same time, palm oil imports by India, the world’s largest buyer, climbed to a 14-month high ahead of the Diwali festival.