Palm ends four-week losing streak amid weak demand, elevated stocks

KUALA LUMPUR: Malaysian palm oil futures snapped a four-week decline on Friday to end on a high, despite concerns over weak demand in November and anticipated higher inventories.

The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange remained unchanged at 4,125 ringgit ($976.56) a metric ton at the close. The contract rose 0.39% this week.

Lower November demand coupled with the strength in the ringgit is keeping the market under pressure, while elevated high-end stocks are also making it increasingly difficult to establish a bottom, said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.

Malaysia’s production is expected to surpass 20 million tons for the first time in 2025, and the record output means it could likely end the year with higher-than-expected stocks.

Malaysia’s palm oil stocks had risen for an eighth consecutive month to a 6-1/2-year high by the end of October, as the biggest output in a decade outweighed a jump in exports, data from the industry regulator showed.

Palm closes slightly higher despite rising output, India demand concerns

Cargo surveyors estimated that exports of Malaysian palm oil products for November 1-10 fell between 9.5% and 12.3%, compared to the same period a month earlier.

Dalian’s most-active soyoil contract remained unchanged, while its palm oil contract shed
0.8%. Soyoil prices on the Chicago Board of Trade were up 0.44%.

Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market.

The ringgit the palm’s currency of trade, weakened 0.1% against the dollar, making the commodity slightly cheaper for buyers holding foreign currencies.

Oil prices climbed about 2%, boosted by supply fears after the Black Sea port of Novorossiysk halted oil exports following a Ukrainian drone attack that hit an oil depot in the major Russian energy hub.

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

Indonesia’s palm oil output in 2026 is expected to grow 3% to 4% annually, slowing from the estimated 4% to 7% increase this year, Indonesia Palm Oil Association (GAPKI) official Fadhil Hasan said.