FX.co ★ Palm Oil Slides Further as Week Begins

Malaysian palm oil futures experienced a decline of approximately 1.7% on Monday, falling below MYR 4,500 per tonne and marking a consecutive session of significant losses. The stronger ringgit and weakness in competing Dalian oils negatively influenced market sentiment. According to industry data, inventories at the end of September increased by 7.2% from August, reaching 2.36 million tonnes, the highest level in nearly two years. Additionally, Kuala Lumpur forecasts the average crude palm oil prices for 2026 to be in the range of MYR 3,900 to MYR 4,100, attributing this to a projected increase in global supply and intensified production from competing oils. In India, the top buyer, October demand is anticipated to fall below 600,000 tonnes, following a 16% decline in September. Despite these factors, losses were mitigated by strong export activity, with Malaysian shipments increasing by 9.9% to 19.4% in the first 10 days of October, as reported by cargo surveyors. September's output decreased by 0.73%, amounting to 1.84 million tonnes, marking the first monthly decline in three months. Meanwhile, crude oil prices experienced a rebound after President Trump indicated a willingness to engage in trade discussions with China, easing previous tensions.