FX.co ★ Palm Oil Falls for 3rd Session

Malaysian palm oil futures declined to below MYR 4,500 per tonne, marking a decrease for the third consecutive session due to the stronger ringgit impacting market sentiment. Meanwhile, expectations in Kuala Lumpur suggest that crude palm oil prices will range between MYR 3,900 and MYR 4,100 in the upcoming year, attributing this to an increase in global supply and enhanced output from competing oils. Industry reports indicate that stock levels at the end of September rose by 7.2% compared to August, reaching 2.36 million tonnes—the highest level observed in almost two years. In India, the largest consumer of palm oil worldwide, demand for October is anticipated to drop below 600,000 tonnes following a 16% decrease in September. However, this decline was partly counterbalanced by robust export figures, with Malaysian shipments increasing by 9.9% to 19.4% during the first ten days of October, as reported by cargo surveyors. The Malaysia Palm Oil Board's data revealed a slight dip in production in September, marking the first monthly decrease in three months. Globally, U.S. Treasury Secretary Scott Bessent mentioned that Washington is engaged in discussions with Beijing to alleviate trade tensions, with a scheduled meeting between Trump and Xi in South Korea later in October.