Palm oil prices fall on weak demand and profit-taking

Malaysian palm oil futures declined on Wednesday after two sessions of gains, pressured by profit-taking and weak export demand. The November contract on Bursa Malaysia fell 0.26% to 4,960 ringgit ($1,227) per ton.

The market is also under pressure from weaker exports. According to cargo surveyors, Malaysian palm oil exports in August declined by 6.5–14.9% compared with July. Market participants noted that India is currently well supplied, while high palm oil prices are discouraging new purchases.

Traders are also awaiting Malaysian Palm Oil Association data on August production. The market is closely watching the potential impact of hot and dry weather on oil palm yields and production volumes.

Rival vegetable oil markets showed mixed trends. Dalian’s most-active soyoil contract gained 0.45%, while its palm oil contract fell 1.04%. Chicago soyoil futures declined by 0.34%. Palm oil typically tracks movements in competing vegetable oils as they compete for demand in the global market.

Crude oil prices stabilised after reaching a more than one-month high as traders assessed risks of potential supply disruptions. Elevated crude oil prices remain supportive for palm oil due to its use as biodiesel feedstock, while weak export demand is currently limiting further price gains.

Tags: prices, Malaysia, palm oil, futures