Palm Oil Sinks, Steep Weekly Loss Looms
Malaysian palm oil futures slipped around 2% to below MYR 4,700 per tonne, extending last week’s decline to a six-week low. A stronger ringgit and weaker soybean oil on the Chicago Board of Trade weighed on sentiment. Meanwhile, a pullback in crude oil after recent gains added pressure amid expectations that the Strait of Hormuz could reopen and U.S. curbs on Iranian exports could ease. Rising Malaysian inventories and sluggish demand from India, the world’s largest vegetable-oil buyer, further dampened the market, though industry officials noted El Niño’s impact has yet to materialize. Losses were partly cushioned by India’s move to cut import duties on crude and refined vegetable oils ahead of the September—November festive season to curb food inflation. On the supply side, Indonesia may face a shorter-than-usual wet season from November, potentially affecting crop conditions. For the week, futures are down about 4.6%, erasing the prior week’s gains in a steep reversal.
Malaysian palm oil futures slipped around 2% to below MYR 4,700 per tonne, extending last week’s decline to a six-week low. A stronger ringgit and weaker soybean oil on the Chicago Board of Trade weighed on sentiment. S. curbs on Iranian exports could ease.
Rising Malaysian inventories and sluggish demand from India, the world’s largest vegetable-oil buyer, further dampened the market, though industry officials noted El Niño’s impact has yet to materialize. Losses were partly cushioned by India’s move to cut import duties on crude and refined vegetable oils ahead of the September—November festive season to curb food inflation. On the supply side, Indonesia may face a shorter-than-usual wet season from November, potentially affecting crop conditions. 6%, erasing the prior week’s gains in a steep reversal.