Palm slips for fourth session on stockpile fears, weak demand

Malaysian palm oil futures fell for a fourth consecutive day on Wednesday, with the December contract on Bursa Malaysia Derivatives Exchange sliding more than 1%. Business Recorder reported that the benchmark contract lost 71 ringgit, or 1.48%, to reach 4,739 ringgit ($1,163.80) per metric ton by midday.

Paramalingam Supramaniam of Selangor-based Pelindung Bestari said stockpiles could reach 3 million metric tons by late September, as output in Sabah rose by double digits. He also called demand sluggish, adding that the market could not avoid the pull of those two factors. Cargo surveyors calculated that Malaysian palm product exports from September 1 to 20 fell by between 12.8% and 24.7% compared with a month earlier.

Rival edible oils weakened too, with Dalian's most-active soyoil down 0.61% and its palm oil contract off 1.79%, while Chicago Board of Trade soyoil fell 0.97%. Crude oil also eased after Saudi Arabia started restoring supply through a key pipeline to the Red Sea, and hopes grew for a diplomatic route to ending the US-Iran war through UN talks in New York. Lower crude makes palm less appealing as a biodiesel feedstock. European Commission figures indicate EU soy imports in the 2026/27 season, starting in July, totalled 2.67 million tons as of September 20, 14% below last year, while shipments of palm oil into the bloc decreased by 26%, reaching 0.56 million tons.