Palm oil futures were trading around MYR 4900 per tonne in mid-October, remaining close to a record high of MYR 4969 per tonne hit earlier in the month, benefiting from higher demand for biofuels due to global rally in energy prices, lower production and transport disruptions. The Malaysian Palm Oil Association said crude palm oil production fell 0.39% to 1.703 million in September, amid labour shortages, flooding in parts of Malaysia and logistical issues related to the coronavirus.

At the same time, stocks fell 6.9% to 1.746 million, retreating from one-year highs in August, due to a sharp rise in exports and local consumption in Malaysia. Both the Malaysian Palm Oil Association and the US Department of Agriculture, have lowered their annual production estimate for Malaysian palm oil for the 2020-2021 season.