Palm oil rises to over 2-year high

Strong demand, coupled with tight supply, drove crude palm oil prices higher for the third consecutive day, with prices rising to their highest in more than 2 years.

On the first trading day of November, January 2025 index futures on the Bursa Malaysia Derivatives Exchange (BMD) rose RM169 to RM4,865 (1,111.24USD) per metric tonne as of 6pm.

Strong market demand for palm oil, coupled with a high rate of old-growth trees, which has created palm oil supply concerns, has pushed palm oil prices up more than 30 percent so far this year.

Indonesia’s trade ministry official said that Indonesia will raise the reference price of palm oil to US$961.97 per metric ton in November from US$893.64 per metric ton in October, which will bring the palm oil export tax to US$124 per metric ton in November.