09.10.202504:23:45UTC+00Palm Oil Holds Firm at 7-Week Peak

Malaysian palm oil futures increased for the third consecutive session, reaching approximately MYR 4,575 per tonne, which is their highest in seven weeks. This upward trend was influenced by stronger performance in rival Dalian oils, with Chinese markets reopening following their week-long holiday, coupled with anticipated declines in production due to seasonal factors. Additionally, export optimism was bolstered following reports from cargo surveyors indicating that Malaysian shipments grew by 7.3% to 9.6% in September compared to August. Meanwhile, Reuters reported that stockpiles decreased by 2.5% to 2.15 million tons. In Indonesia, the leading global producer, the government has announced plans to introduce B50 biodiesel by 2026 and is considering the launch of 10% bioethanol blends in gasoline to reduce emissions and fuel imports. Despite these positive factors, gains were limited due to caution surrounding the forthcoming release of September's monthly data. Demand from India, the largest consumer, remained tepid, decreasing by 15.9% to 833,000 tons in September and potentially shrinking further to 600,000 tons as festive purchases reach their peak. Additionally, declining crude oil prices and concerns over a potential U.S. government shutdown also dampened market sentiment.