28.10.202504:25:53UTC+00Palm Oil Slides for 3rd Session, Notches 4-Week Low

Malaysian palm oil futures dipped below MYR 4,350 per tonne on Tuesday, marking a decline for the third consecutive session and reaching a four-week low. This downward trend was influenced by downturns in the Dalian and Chicago edible oil markets and a strengthening of the ringgit. Concurrently, export estimates weakened, with shipments from October 1–25 experiencing a 0.3–0.4% decrease from the previous month, as reported by cargo surveyors. Investor sentiment faced additional pressure from worries over global demand fluctuations and unpredictable weather, which could disrupt production in early 2026. The attractiveness of palm oil as a biodiesel feedstock was further lessened by the fall in crude oil prices. However, some losses were tempered by optimism regarding a potential U.S.-China trade agreement, as Presidents Trump and Xi Jinping are expected to meet at the APEC summit in South Korea later this week. Additionally, in Indonesia, the largest producer, plans to introduce an E10 ethanol blend by 2027–2028, with a gradual move to E20, may enhance domestic palm oil consumption in biodiesel, signaling robust long-term regional demand.