Palm closes slightly higher despite rising output, India demand concerns

Malaysian palm oil futures reversed earlier losses to end on a slightly higher note on Thursday, despite rising output expectations and concerns over demand from key buyer India. The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange rose 2 ringgit, or 0.05%, to 4,126 ringgit ($976.80) a metric ton at the close. The contract fell 0.31% in the previous session. “There is a risk of Malaysian palm oil production crossing 20 million tons this year and Indonesia’s palm oil production has also seen double-digit growth so far,” said Anilkumar Bagani, research head of Mumbai-based vegetable oil broker Sunvin Group, adding that a crude oil selloff and the stronger ringgit were further pressuring palm oil prices. Malaysia’s crude palm oil production is expected to surpass 20 million tons for the first time in 2025, supported by favourable weather, improved labour supply, and higher-yielding new plantations, trade and industry officials told Reuters. ...