FX.co ★ Palm Oil Recovers from 4-Month Low

Malaysian palm oil futures surged by approximately 1.5%, surpassing MYR 4,150 per tonne, recovering from a subdued trading session the previous day. This upward movement was fueled by strong performances in rival edible oils on the Dalian and Chicago exchanges, along with bargain hunting behavior following a four-month price low last week. Glenauk Economics, a research firm, predicts that prices will remain robust, ranging between MYR 4,300 and MYR 4,600 in the first half of 2026, due to delays in the peak production season within the industry. Additional positive momentum came from progress in resolving the U.S. government shutdown, as the Senate successfully passed a funding bill. However, further gains were limited by a stronger ringgit, coupled with weather concerns as the northeast monsoon is forecasted to begin on Thursday and continue through March 2026. Meanwhile, data from the Malaysian Palm Oil Board revealed that end-October inventories reached a six-and-a-half-year high, with production increasing by 11.02% to its highest level since August 2015. On the export front, cargo surveyors reported a decline in shipments by 9.5% to 12.3% from November 1 to 10.