FX.co ★ Palm Oil Falls for 3rd Session

Malaysian palm oil futures have recently experienced a decrease, remaining below MYR 4,500 per tonne. This marks the third consecutive session of retreat due to declining vegetable oil prices in the Dalian market. Demand from India, the largest buyer, is predicted to decline following a peak during the Diwali festival, which is contributing to the downward pressure on prices. Globally, investor caution prevails amidst uncertainty over a potential meeting between U.S. President Trump and Chinese leader Xi Jinping, although there are hopes for a trade agreement with Beijing that have helped contain more significant losses. Additionally, there is support from increasing exports, as cargo surveyors reported that Malaysia’s palm oil shipments between October 1 and 20 rose by 2.5% to 3.4% compared to the same period in September. In Indonesia, the leading producer, biodiesel consumption in the first nine months has increased by nearly 10% year-on-year, indicating stronger domestic demand that could bolster prices. The Malaysian Palm Oil Council anticipates that crude palm oil prices will remain above MYR 4,400 moving into 2026, amidst uncertain trends in palm and soybean oil exports.