02.11.202603:46:10UTC+00Palm Oil Slips Below MYR 4,700

Malaysian palm oil futures slipped below MYR 4,700 per tonne, retracing their earlier gains as weaker crude oil prices reduced the attractiveness of palm oil as a biodiesel feedstock. The decline was compounded by record-high inventories, while mixed manufacturing data from China, a key palm oil importer, did little to clarify the demand outlook. The official PMI indicated a contraction in factory activity, in contrast to ongoing expansion reflected in the private-sector survey. Even so, a softer ringgit and resilient export demand helped limit further losses. Cargo surveyors reported that shipments surged by 46.9%–67.7% during October 1–25 compared with the same period in September, partly driven by pre-Diwali purchases from leading consumer India. At the same time, Malaysia’s Finance Ministry is reportedly assessing a proposal to suspend crude palm oil export taxes, with inventories expected to surpass 3 million tonnes by year-end amid peak seasonal production. Market participants now await the Malaysian Palm Oil Board’s monthly report, due on November 10, for additional insight into the evolving supply-demand balance.