Malaysian palm oil futures edged higher, stabilizing above MYR 4,750 per tonne after recent declines. The uptick was driven by strong export data, with shipments surging 58.5%, 78.4% in the first 20 days of October compared to the same period in September. Key importer India’s festival-related demand also contributed to the positive sentiment.
Supporting the rally were higher crude oil prices, which improved palm oil’s appeal as a biodiesel feedstock. Malaysia is exploring a temporary reduction or waiver of its 10% crude palm oil export tax to address record-high inventories and enhance global price competitiveness. Stocks hit an all-time high of 3.51 million tonnes in September.
However, gains were limited by weaker palm olein futures in Dalian and lower soyoil prices in Chicago. Additionally, seasonal production is expected to remain elevated in October, marking the sixth consecutive monthly increase, which could reinforce supply concerns.