Palm oil falls to 10-week low on expectations of rising stocks
Malaysian palm oil futures fell to their lowest closing level in 10 weeks on Tuesday. The benchmark December contract on Bursa Malaysia declined 0.81% to 4,626 ringgit/t, or around $1,135/t.
The market came under pressure from weaker vegetable oil prices in Dalian and expectations of rising Malaysian stocks. Traders linked the bearish sentiment to strong production and weaker export performance in September.
According to Intertek Testing Services and AmSpec Agri Malaysia, Malaysian palm oil exports for September 1–25 fell by 15.1–24.3% from the previous month. Meanwhile, inventories at the end of August had already climbed to an eight-month high.
In Dalian, palm oil futures fell 1.14%, while soyoil declined 0.09%. CBOT soyoil, by contrast, rose 0.44%, but the increase was not enough to support the palm oil market.
The medium-term outlook remains mixed. Industry representatives expect palm oil could trade at a premium to soyoil in 2027 as El Niño threatens production and rising biodiesel demand in Indonesia tightens supplies.
Read also
Ukraine ships first sunflower seed vessel to Turkey this season
US cattle placements fall to record August low
Uzbekistan plans to more than double fertilizer exports to the EU
Algeria expands Sahara wheat project, targets yields of 6 t/ha
US increases beef imports from Paraguay as domestic prices remain high
Got additional questions?
We will be happy to assist!
Write to us
Our manager will contact you soon