Palm Oil Gains Despite Malaysia’s Sharp Inventory Increase
Palm oil prices rose despite a 25% monthly jump in Malaysia’s stocks to 3.5 million tons. Citi expects inventories to fall as output weakens.
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what happened
Palm oil finished higher even after MPOB data showed that Malaysia’s stocks at the end of September had climbed 25% from the previous month to 3.5 million tons, Dow Jones Newswires reports. Inventories reached a historic peak at the end of last month, supported by strong production.
Citi Research analyst Gan Huan Wen said in a note that the surplus is likely to be temporary. Lower yields linked to the El Nino weather phenomenon, together with a low-production season beginning in January, should reduce inventories and push crude palm oil prices higher, Gan wrote.
The Bursa Malaysia Derivatives contract for December delivery added 46 ringgit to reach 4,638 ringgit a ton.
why it matters
The market is weighing elevated current supplies against expectations of tighter availability ahead. That outlook is supporting palm oil prices despite the record inventory level reported for the end of September.
instruments
sources
- Palm Oil Rises; Upward Trend to Persist — Market Talk — Dow Jones Newswires, 12 October 2026 at 10:30 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
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