FX.co ★ Palm Oil Nears MYR 4,800 as Profit-Taking Offsets Demand

Malaysian palm oil futures slipped towards MYR 4,800 per tonne as traders booked profits after prices neared a four‑week high. Sentiment was further pressured by record inventories of 3.51 million tonnes in September, with seasonal output expected to remain strong in October following six straight months of increases.

However, the downside was limited by firmer edible oil prices on the Dalian and Chicago exchanges. Export activity also provided support, as cargo surveyors reported a 43.2%–58.3% month‑on‑month jump in palm oil shipments during the first half of October. Festival‑driven demand from India, a major buyer, helped bolster risk appetite.

At the same time, Indonesia raised its October crude palm oil reference price to USD 1,042.15 per tonne, while higher crude oil prices improved palm oil’s appeal as a biodiesel feedstock. Traders are now closely watching Malaysia’s potential move to waive or cut its crude palm oil export tax, a step that could strengthen the country’s competitiveness against Indonesian supplies.