Palm oil ends September lower on high Malaysian stocks

Malaysian palm oil futures ended September with their first monthly decline in four months. Prices lost around 5% over the month, pressured by expectations of further stock accumulation and weaker exports.

The December contract on Bursa Malaysia Derivatives Exchange fell to 4,626 ringgit/t, or around $1,135/t, the lowest closing level since July 21. Expectations of strong production during the seasonal peak added further pressure.

Malaysia’s palm oil stocks rose by 15.2% month-on-month at the end of August to 1.65 mln tons. Production increased to 1.82 mln tons, while exports fell by 7.5%, raising concerns over further supply accumulation.

External demand also remains weak. Surveyors estimate that Malaysian palm oil exports in September 1–25 fell by 15.1–24.3% compared with the same period in August.

At the same time, lower vegetable oil import duties in India and prospects for stronger biodiesel demand in Indonesia could provide some support. El Niño also remains a key factor for 2027, as it could curb palm oil production and tighten export supplies.

Tags: prices, Malaysia, palm oil