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24.10.202504:19:48UTC+00Palm Oil Set to Post Second Straight Weekly Loss

Malaysian palm oil futures remained just below MYR 4,450 per tonne, reversing slight gains from the prior session due to a stronger ringgit and declining soyoil prices on both the Dalian and Chicago exchanges. The futures were poised for a second straight weekly drop, having decreased by approximately 1.6%. This decline came as traders worried about uncertain demand and unpredictable weather potentially impacting production in the first quarter of 2026. However, these losses were somewhat mitigated by news that Indonesia, the leading producer, intends to mandate a 10% bioethanol blend in gasoline by 2027, which aims to reduce its reliance on fuel imports. Meanwhile, the Malaysian Palm Oil Council projected that crude palm oil prices would likely remain above MYR 4,400 as we approach 2026, given fluctuating trends in palm and soybean oil exports. Additionally, market sentiment was bolstered by the White House's confirmation that President Trump is scheduled to meet with Chinese leader Xi Jinping next week in South Korea, alleviating some trade tensions between Washington and Beijing.

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