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Malaysian palm oil futures lost ground for a third straight session, pulled lower by weaker global crude and edible oil prices, even with upbeat export demand and a weaker ringgit in play.
The December palm oil contract on Bursa Malaysia opened lower, tracking similar losses in rival soyoil futures on the Dalian and Chicago exchanges. This highlights how closely palm oil moves with competing oils, since shifts in pricing can quickly shuffle demand across the sector. Falling crude oil prices—blamed on OPEC+ boosting supply and Iraqi exports coming back online—have also hurt palm oil, mainly because they make biodiesel less attractive. Still, the drop in the Malaysian ringgit is helping palm oil exports look more appealing to foreign buyers. According to the Malaysian Palm Oil Board, inventories could drop to 1.7 million metric tons by year-end as seasonal production slows and festive demand picks up. Technical analysts are eyeing the key 4,366 ringgit per ton support level—if prices break below, we could see a sharper downturn.
Palm oil’s price swings mirror those across the broader commodities landscape, as traders weigh global risk appetite against fundamental trends. Edible oil prices remain closely linked—so palm oil could stay choppy as markets react to crude oil moves, currency shifts, and seasonal buying patterns. For now, uncertainty around OPEC+ and global demand means traders are keeping their guard up.
Malaysia’s palm oil industry is holding its own thanks to a weaker ringgit, tightening inventories, and steady export demand—even as global pressures persist. Staying attuned to real-time prices and supply chain data is more crucial than ever for market players. As we head toward year-end, these cross-currents will likely keep palm oil in the global spotlight.
Source: Online/OFA
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