Palm oil prices fell to a 17-week low under pressure from reduced demand from India.

According to preliminary estimates by distributors, India in October reduced the import of edible oils compared to September by 20.7% to 1.27 million tons, including palm oil to a 5-month low of 600 thousand tons. The reduction in imports, due to significant reserves and a drop in consumer demand, is increasing pressure on spot prices for palm oil. In 2024/25 MY, palm oil imports to India fell to a 5-year low as buyers shifted to cheaper soybean oil. December futures for palm oil fell by another 0.9% yesterday to a 17-week low of 4108 ringgit/ton or 972 $/ton (-9% in two weeks) on expectations of increased stocks in October due to slower export growth compared to production. Stocks of palm oil in Malaysia are forecast to rise by 3.5% in October compared to September to the highest level since October 2023 at 2.44 million tons, while exports (according to surveyors) are expected to increase by 4.3-5.2%. The drop in palm oil prices will increase pressure on ...