Palm Oil Stays Below MYR 4,700 on Weak Demand
Malaysian palm oil futures extended losses, remaining below MYR 4,700 per tonne and hovering near a six-week low amid weakness in competing edible oils on the Dalian and Chicago markets. Bearish sentiment was reinforced by sluggish exports, with cargo surveyors estimating Malaysian palm oil shipments dipped 15.1%—24.3% in the first 25 days of September from the same period a month earlier. Meanwhile, expectations of higher Malaysian inventories and subdued Indian demand in September added pressure, although India’s recent duty cuts could support imports ahead of the festive season. Industry officials said the effects of El Niño have yet to materialise in palm oil production. Still, losses were tempered by firmer crude oil prices following President Trump’s rejection of Iran’s conditional offer to reopen the Strait of Hormuz. Meanwhile, a potentially shorter-than-usual wet season in Indonesia from November could pose risks to crop conditions.
Malaysian palm oil futures extended losses, remaining below MYR 4,700 per tonne and hovering near a six-week low amid weakness in competing edible oils on the Dalian and Chicago markets. 3% in the first 25 days of September from the same period a month earlier. Meanwhile, expectations of higher Malaysian inventories and subdued Indian demand in September added pressure, although India’s recent duty cuts could support imports ahead of the festive season. Industry officials said the effects of El Niño have yet to materialise in palm oil production.
Still, losses were tempered by firmer crude oil prices following President Trump’s rejection of Iran’s conditional offer to reopen the Strait of Hormuz. Meanwhile, a potentially shorter-than-usual wet season in Indonesia from November could pose risks to crop conditions.