2025.10.3106:10:27UTC+00Palm Oil Weakens Further, On Track for Second Monthly Loss

Malaysian palm oil futures have slipped below MYR 4,250 per tonne, continuing their downward trend due to weaker performance in competing edible oils on the Dalian market and an appreciating ringgit. The prices are now at their lowest point in 12 weeks, marking the second straight weekly and monthly decline, with decreases of approximately 4.4% and 2.9% respectively. The market sentiment has been adversely affected by indications of weak exports in October and expectations of reduced demand as winter sets in, historically a period when consumption diminishes in major importing nations. Further adding to the negative outlook, China's official Purchasing Managers' Index (PMI) indicated a slowdown in economic activity for October. Meanwhile, the temporary trade truce between the U.S. and China has been met with skepticism by traders, who perceive it as merely a strategic pause without significant progress. In Indonesia, the leading palm oil producer, officials are seeking to establish a zero-tariff agreement with the U.S., akin to Malaysia’s current terms, to enhance the competitiveness of its palm oil exports.