FX.co ★ Palm Oil Steadies Near 4-Month Low

Malaysian palm oil futures held steady around MYR 4,110 per tonne on Monday, following significant declines in the prior session. Prices remain near their lowest in four months, influenced by data from the Malaysian Palm Oil Board indicating that end-of-October inventories increased by 4.44% from the previous month, reaching 2.46 million metric tons—the highest figure in over six and a half years. Concurrently, production surged by 11.02% to 2.04 million tons, the highest production level since August 2015, and exports rose sharply by 18.58% to 1.69 million tons, the strongest annual growth. In China, a major purchaser, the Dalian exchange saw a rise in the most active soyoil contracts, while palm oil futures experienced a decline. This trend followed reports showing consumer prices turned positive in October, and the decline in producer prices slowed. Market watchers are now looking towards export performance forecasts for the initial ten days of November.