Palm oil ends lower as August inventories rise more than expected

Malaysian palm oil futures ended lower on Tuesday after industry data showed inventories in the world’s second-largest producer rose more than expected last month.

The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange closed down 12 ringgit, or 0.31%, at 3,883 ringgit ($894.70) a metric ton.

Malaysia’s palm oil stocks at the end of August rose 7.34% from the previous month to 1.88 million metric tons, the highest level in six months, the Malaysian Palm Oil Board (MPOB) said.

Crude palm oil production gained 2.87% to 1.89 million tons, while palm oil exports fell 9.74% to 1.53 million tons, the board said.

Palm oil may retest support at 3,856 ringgit per ton, a break below which could trigger a fall to 3,833 ringgit.

Oil prices gave up the previous day’s gains on Tuesday as weak Chinese demand offset U.S. supply disruptions from Tropical Storm Francine and global oil oversupply risks that continue to weigh on the market.

Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.

Global shares steadied on Tuesday, struggling to draw momentum from a rally on Wall Street as concerns about faltering economic growth dampened investor sentiment, which also dented the oil price.

For almost 30 years of expertise in the agri markets, UkrAgroConsult has accumulated an extensive database, which became the basis of the platform AgriSupp.

It is a multi-functional online platform with market intelligence for grains and oilseeds that enables to get access to daily operational information on the Black Sea & Danube markets, analytical reports, historical data.

You are welcome to get a 7-day free demo access!!!

Tags: Malaysia, palm oil, stocks, futures, benchmark contract, Crude palm oil, Production