Palm gains marginally after stocks rise below forecast

Malaysian palm oil futures closed slightly higher on Tuesday, with the January contract adding 2 ringgit, or 0.05%, to 4,260 ringgit ($1,052.63) a metric ton. Business Recorder reported that the move followed data showing October inventories increased to 3.62 million metric tons, below the 3.75 million tons anticipated in a Reuters poll.

Output growth still pushed stocks to a new record, although exports also recovered. Crude oil prices fell as US President Donald Trump played down the prospect of further military action against Iran, while the ringgit strengthened 0.05% against the dollar; both developments formed part of the market backdrop. Other edible-oil benchmarks were mixed, with Dalian soyoil up 0.14%, its palm contract higher by 0.61%, and Chicago soyoil down 0.1%.