Palm oil futures have risen steadily in recent sessions, but the move is being driven less by demand strength and more by the ringgit’s decline. As the currency continues to weaken against the US dollar, Malaysian exports become cheaper, providing a temporary boost to pricing power. This comes at a time when underlying exports have actually fallen. For the first half of November, palm product shipments from Malaysia are down by over 10% compared with the same period last month.
While Malaysia adjusts to weaker currency dynamics, Indonesia is creating a different kind of uncertainty. A growing push to expand domestic biodiesel blending, combined with land access issues and shifting export quotas, has introduced fresh variables into the global supply picture. Tighter biodiesel rules could raise internal demand, leaving less product available for export.
October production data from Malaysia adds another layer of complexity. Output jumped more than 11% year on year, reaching levels not seen since mid‑2015. Inventories also climbed sharply, adding weight to concerns about oversupply in the short term. There’s also less support from crude oil prices, which limits the economic case for palm‑based biodiesel at current levels.
Dekel Agri-Vision PLC (LON:DKL) aspires to become a leading agro-industrial company in West Africa, one that creates value for shareholders whilst at all times placing the interests of the local communities and environment in which it operates in at the heart of its operations.
