Malaysia: Rising palm oil prices to a 27-month high is supporting prices for other vegetable oils

Forecasts of a cut in production caused palm oil prices to rise to a 2-year high, supporting sunflower and soybean oil prices. December palm oil futures on Bursa Malaysia rose another 2.2% yesterday to a 27-month high of 4,486 ringgit/t or $1,032/t (+5.4% from the start of the week) on forecasts of a cut in production in Malaysia and Indonesia, the expected increase in exports in October - November, and the increase in domestic consumption in Indonesia, where from January 1, 2025, the B40 mandate to blend 40% biofuel into fuel is being implemented. Malaysian authorities are increasing to 10% the maximum duty rate on crude palm oil exports worth more than 4,050 ringgit/t from November 1. According to Intertek Testing Services, in September, compared to August, Indonesia reduced palm oil exports by 24.8% from 2.38 million tons to 1.79 million tons due to a 33% decrease in imports of this oil by India to a 6-month low of 527,314 thousand tons. On the exchange in Dalian, the most ...