Palm Oil Drops to Eight-Week Low as Exports Slump, Supply Rises
Malaysian palm oil futures extended recent declines, hovering below MYR 4,650 per tonne and touching an eight-week low, as weaker edible oils on the Dalian market and sluggish export demand weighed on sentiment. Cargo surveyors noted palm oil shipments fell 15.1%—24.3% in the first 25 days of September from the same period in August. Meanwhile, expectations of seasonally higher production raised concerns that end-month stocks could exceed 3 million tonnes. Industry estimates pointed to a sharp rise in output, with production up 20.84% in the first 25 days of September from August. Still, losses were capped by firmer crude oil prices amid persistent uncertainty over U.S.-Iran talks, supporting demand for palm oil as a biodiesel feedstock. In Indonesia, palm oil exports fell 9.87% yoy to 3.19 million tonnes in July, according to a palm oil association, adding to concerns over regional demand. Traders now await China’s September PMI data for clues on activity and commodity demand.
Malaysian palm oil futures extended recent declines, hovering below MYR 4,650 per tonne and touching an eight-week low, as weaker edible oils on the Dalian market and sluggish export demand weighed on sentiment. 3% in the first 25 days of September from the same period in August. Meanwhile, expectations of seasonally higher production raised concerns that end-month stocks could exceed 3 million tonnes. 84% in the first 25 days of September from August.
-Iran talks, supporting demand for palm oil as a biodiesel feedstock. 19 million tonnes in July, according to a palm oil association, adding to concerns over regional demand. Traders now await China’s September PMI data for clues on activity and commodity demand.