05.10.202603:34:02UTC+00Palm Oil Steadies After Recent Losses

Malaysian palm oil futures were broadly steady after a recent bout of weakness, as bargain hunting emerged following prices’ fall to their lowest level since mid-July last week. Overall sentiment remained fragile, with futures stuck below MYR 4,500 per tonne amid mounting production, expectations that inventories will surpass three million tonnes, and subdued export activity.

Cargo surveyor data showed that September shipments declined by 17.1%–28.8% month-on-month, reinforcing concerns over soft demand. At the same time, Chicago soyoil futures inched higher, while Dalian markets were shut for China’s Golden Week holidays.

Analyst Dorab Mistry projects palm oil prices will trade in a MYR 4,500–5,000 range through December, with high stock levels likely to cap the upside even as El Niño-related supply risks loom for next year.

In India, the world’s largest palm oil buyer, imports are expected to remain broadly stable in the 2026/27 marketing year following a recent duty reduction. Additionally, lower edible-oil tariffs ahead of the festive season could support near-term consumption. However, a pullback in crude oil prices after a G7 strategic stock release has reduced palm oil’s attractiveness as a biodiesel feedstock.