Malaysian palm oil futures flat on high stockpile concerns

Malaysian palm oil futures were little changed on Tuesday, with gains from firmer crude oil prices offset by concern over higher September stockpiles. 45) a metric ton by the midday break. David Ng, a proprietary trader at Kuala Lumpur-based Iceberg X Sdn Bhd, said the market was supported by stronger crude and follow-through buying after Monday's rebound, but expectations of high September inventories kept gains in check. Malaysia's palm oil inventories are expected to reach an all-time high in September, above the December 2018 peak, after production rose to record levels and outpaced sluggish export demand, a Reuters survey showed.

Oil prices also posted slight gains as security concerns in the Middle East kept a geopolitical risk premium in the market, even as resilient regional crude exports and a G7 emergency stockpile release eased supply worries. 03%. The Dalian Commodity Exchange is shut for a public holiday and is due to reopen on October 8. Palm oil competes with rival edible oils in the global vegetable oils market and is used as biodiesel feedstock.

02% against the dollar, making the commodity slightly more expensive for buyers holding foreign currencies. Five dealers said Indian sunflower oil imports fell in September to their lowest in more than four years after the Ukraine war disrupted shipments, prompting refiners to lift palm oil purchases to their highest level in seven months. Reuters technical analyst Wang Tao said palm oil may extend its rebound to 4,656-4,677 ringgit per metric ton, based on its wave pattern and a channel technique. 0840 ringgit)