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06.11.202604:07:58UTC+00Palm Oil Heads for Steepest Weekly Loss in Near 2 Years

Malaysian palm oil futures extended losses, trading below MYR 4,350 per tonne and touching their lowest level since March. The contract is on track for its steepest weekly decline in nearly two years, pressured by a slump in rival edible oil prices and record-high stockpiles.

The sharp weekly fall in crude oil prices further weighed on sentiment, undermining palm oil’s attractiveness as a biodiesel feedstock as concerns eased over potential supply disruptions in the Middle East. At the same time, regional competition intensified after top producer Indonesia cut its November crude palm oil reference price by more than 6% and reduced its export levy, making its shipments more price-competitive.

Market sentiment was also dampened by uncertainty surrounding potential changes to Malaysia’s CPO export tax. However, the downside was partially limited by robust demand: October exports jumped by 45.4%–73.5% from September, while palm oil imports by major buyer India rose to a 14-month high ahead of the Diwali festival.

Traders are now awaiting the Malaysian Palm Oil Board’s monthly report, scheduled for release on November 10.

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