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Malaysian palm oil futures have slipped for the fourth straight day, hit by shrinking exports and a broader pullback across the global edible oils market.
Palm oil contracts in Malaysia ended the day down 1.6% at 3,990 ringgit ($966.10) per metric ton, pressured by sluggish demand and stiff competition from other vegetable oils. Weakness in both Chinese and US soyoil trades added to the dip, signaling that challenges are spreading beyond just palm oil. On top of that, Malaysian palm oil exports dropped as much as 18.8% in the first three weeks of November compared to a month earlier. The ringgit’s recent strength has made Malaysia’s palm oil less appealing to buyers overseas. And while industry experts are closely watching major floods that have already displaced over 11,000 people in seven states, crude palm oil prices have remained trapped in a tight range as everyone waits to see whether supply disruptions will unfold.
The continued drop in palm oil prices ties into bigger volatility across the global edible oils sector. With soyoil prices under pressure in both Dalian and Chicago, traders are navigating shifting supply-and-demand trends and unpredictable currency moves. The ringgit’s gains are making exports tougher, and unless foreign buyers step in, price weakness could hang around. For those exposed to palm oil—whether investors or companies—the risk of further disruptions from ongoing flooding is a big factor to watch as the season unfolds.
Malaysia’s palm oil market is especially sensitive to global forces and unpredictable weather. With flooding threatening production and demand slipping, prices could stay jumpy. Competition with other vegetable oils means even modest swings in exchange rates or weather can spill over into food prices around the world. While the current dip may not last forever, it’s a firm reminder of just how reactive—and globally connected—this market really is.
Source: Online/OFA
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