Palm ends four-week losing streak amid weak demand, elevated stocks

Malaysian palm oil futures snapped a four-week decline on Friday to end on a high, despite concerns over weak demand in November and anticipated higher inventories. The benchmark palm oil contract FCPO1! for January delivery on the Bursa Malaysia Derivatives Exchange remained unchanged at 4,125 ringgit ($976.56) a metric ton at the close. The contract rose 0.39% this week. Lower November demand coupled with the strength in the ringgit is keeping the market under pressure, while elevated high-end stocks are also making it increasingly difficult to establish a bottom, said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari. Malaysia’s production is expected to surpass 20 million tons for the first time in 2025, and the record output means it could likely end the year with higher-than-expected stocks. Malaysia’s palm oil stocks had risen for an eighth consecutive month to a 6-1/2-year high by the end of October, as the biggest output in a decade ...