Malaysian palm oil futures fall over 1% to around MYR 4,900

  • Malaysian palm oil futures fell around 1.3% to MYR 4,900 per tonne.
  • Inventories rose 7.48% to 2.82 million tonnes, an eight-month high.
  • Exports fell 7.5% to 1.29 million tonnes while production rose 1.39%.

Malaysian palm oil futures fell around 1.3% to MYR 4,900 per tonne, extending their decline to a one-week low after Malaysian Palm Oil Board data showed inventories rose 7.48% month on month in August to an eight-month high of 2.82 million tonnes. Exports fell 7.5% to 1.29 million tonnes, while production increased 1.39% to 1.82 million tonnes, reinforcing concerns about ample supply. Weaker edible oil prices in Dalian and Chicago and a stronger ringgit added pressure. Heavy edible oil buying has congested Indian ports, delaying vessel unloading by up to 10 days as storage tanks overflow, potentially curbing near-term import demand. Losses were limited by Brent crude breaching US$100 a barrel amid renewed Middle East tensions, supporting palm oil's appeal as a biodiesel feedstock, while dry weather and fires and haze in Borneo and Sumatra raised concerns over Southeast Asian yields.

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