Palm oil ended four consecutive days of decline, followed by a rise in crude oil prices. As the energy crisis in the Middle East worsens, the appeal of biofuels and their raw materials has increased. Kuala Lumpur's benchmark palm oil futures rose as high as 1.3% to 4,877 ringgit per tonne. Chicago soybean oil futures rose as high as 0.9%. Satya Warka, senior palm oil analyst at Fastmarkets, said that the overall palm oil market is still bullish due to concerns about medium- to long-term supply prospects. “Biodiesel policies and weather factors support medium- to long-term prices at a fundamental level,” he said. He mentioned that Indonesia is expanding mandatory biofuel blending requirements. This policy will reduce supply to the global market; at the same time, the El Niño phenomenon is rapidly increasing, which is expected to slow down production next year. However, as the world's major producers enter the peak production season and demand from India, the main buyer, falls short of expectations, short-term prices have fallen back from the two-year high set at the end of August. According to official data, Malaysia's exports fell 7% last month, while inventories also increased 7%, reflecting weak demand. Valca added, “Recently, fundamentals have been weak, so contracts have been subdued recently, and the futures curve shows a deep positive market structure.”

Palm oil ended four consecutive days of decline, followed by a rise in crude oil prices. As the energy crisis in the Middle East worsens, the appeal of biofuels and their raw materials has increased. Kuala Lumpur's benchmark palm oil futures rose as high as 1.3% to 4,877 ringgit per tonne. Chicago soybean oil futures rose as high as 0.9%. Satya Warka, senior palm oil analyst at Fastmarkets, said that the overall palm oil market is still bullish due to concerns about medium- to long-term supply prospects. “Biodiesel policies and weather factors support medium- to long-term prices at a fundamental level,” he said. He mentioned that Indonesia is expanding mandatory biofuel blending requirements. This policy will reduce supply to the global market; at the same time, the El Niño phenomenon is rapidly increasing, which is expected to slow down production next year. However, as the world's major producers enter the peak production season and demand from India, the main buyer, falls short of expectations, short-term prices have fallen back from the two-year high set at the end of August. According to official data, Malaysia's exports fell 7% last month, while inventories also increased 7%, reflecting weak demand. Valca added, “Recently, fundamentals have been weak, so contracts have been subdued recently, and the futures curve shows a deep positive market structure.”