FX.co ★ Palm Oil Starts Week Notably Higher

On Monday, Malaysian palm oil futures were trading above MYR 4,150 per tonne. This uptick followed two weaker sessions and was driven by a combination of factors. A softer ringgit and stronger performance in Dalian's most-active soyoil and palm oil markets bolstered market sentiment, allowing prices to recover from a four-month low. Nonetheless, there remains cautiousness in the market due to ongoing uncertainties concerning Indonesia's land-seizure policies and its biodiesel strategy, which have kept a lid on potential gains. This cautious optimism was further tempered by reports from a cargo surveyor indicating a 15.5% decline in Malaysian palm oil product shipments from November 1 to 15 compared to the previous month. On the supply front, industry data revealed a significant rise in output for October, surging 11.02% to its highest level since August 2015, while stock levels rose to a 6.5-year high. Meanwhile, in India— the largest consumer of palm oil—imports fell to a five-month low in October. Indian buyers preferred soybean oil as palm oil prices rose, resulting in a 16% decrease in palm oil imports for the 2024/25 marketing year to 7.56 million tonnes, marking their lowest level in five years.