FX.co ★ Palm Oil Recovers as Markets Resume Activity

Malaysian palm oil futures experienced a nearly 1% increase, reaching approximately MYR 4,560 per tonne, as the market bounced back from previous session losses once trading resumed post-long weekend. The rally was largely driven by stronger performances in rival oils on both the Dalian and Chicago exchanges, as well as optimistic export forecasts. According to the cargo surveyor Intertek Testing Services, Malaysian palm oil shipments from October 1–20 saw a 3.4% increase compared to the same period in September. Further contributing to the positive market sentiment was former U.S. President Trump's indication of a possible "fair trade deal" with China's Xi Jinping and White House projections that the government shutdown may conclude within the week. However, upward momentum was partially tempered by elevated Malaysian inventory levels, which rose by 7.2% from August to 2.36 million tonnes by the end of September, marking the highest stockpile in nearly two years. Meanwhile, India, the leading global importer of palm oil, reduced its purchases by 16.3% in September—the lowest since May—as refiners opted for the more cost-effective soyoil.