Palm oil falls to two-week low as stocks rise

Malaysian palm oil futures fell to their lowest level in two weeks on Friday amid rising inventories and weaker exports. The benchmark November contract on Bursa Malaysia Derivatives declined 1.37% to 4,818 ringgit per ton, or around $1,184/t.

The contract lost 2.25% over the week after gaining 0.72% the previous week. Malaysia’s palm oil inventories rose to an eight-month high in August as production increased to its highest level since December while exports declined.

Analysts said the inventory build reflects an imbalance between seasonal production recovery and softer external demand. Malaysian palm oil exports for September 1–10 fell by 11.7–17.5% from the previous month, according to cargo surveyors.

The market also came under pressure from weaker prices for rival edible oils. Dalian’s most-active soyoil contract fell 0.31%, palm oil declined 1.4%, while Chicago soyoil lost 1.63%.

At the same time, concerns over future supply are limiting further losses. Crude oil prices remaining near $100 per barrel may also provide some support by preserving palm oil’s attractiveness as a biodiesel feedstock.

Tags: prices, Malaysia, palm oil