Palm oil prices seen stable above RM4,000/tonne in October, says MPOC

Palm oil prices are expected to remain stable above RM4,000 per metric ton in October despite ongoing uncertainty in the market, state agency Malaysian Palm Oil Council (MPOC) said on Tuesday.

The MPOC said a sharp decline in palm oil inventories in Malaysia would keep prices high, however, weak energy prices, a supply surplus of soybean oil and palm oil’s price premium over soft oils may cap the rally.

“Key factors influencing palm oil’s supply and demand as we head into the final quarter of 2024 include India’s palm oil inventory levels, Indonesia’s B40 biodiesel policy and the global production and consumption trends of the four major vegetable oils in 2025,” the MPOC said in a statement.

Malaysia’s benchmark crude palm oil futures are currently trading at six-month highs.

The MPOC said from January to September this year, Malaysia’s palm oil production rose 8.7% to 1.15 million tons, while exports increased 12.9% to 1.41 million tons.

“The growth in exports outpaced production by 260,000 tons in the first nine months of 2024, resulting in a year-over-year decline in palm oil inventory, which stood at 2.01 million tons as of September 2024.”

Lower palm oil stocks at Indian ports suggest that India, the world’s biggest importer of edible oils, will likely increase palm oil imports ahead of the festive season, with an estimated 700,000 tons in October, the MPOC said.

Meanwhile, Indonesia’s decision to raise its biodiesel mandate will further tighten available palm oil supplies for export, it added.

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Tags: Malaysia, biodiesel, palm oil, MPOC, stocks, futures, Market, soybean oil, Malaysian Palm Oil Council, prices, Crude palm oil, Production