Palm falls for fourth session on stockpile concerns, weak demand

Malaysian palm oil futures extended their losses to a fourth consecutive session on Wednesday, Business Recorder reported, as traders weighed rising stockpiles against softer buying. The December contract on the Bursa Malaysia Derivatives Exchange closed 42 ringgit lower, or 0.87%, at 4,768 ringgit ($1,169.49) per metric ton.

Cargo surveyors calculated a drop of between 12.8% and 24.7% in Malaysian palm product shipments from September 1 to 20, compared with a month before. A Selangor-based brokerage director, Paramalingam Supramaniam, expects stockpiles to hit 3 million metric tons, possibly a little higher, by month-end, driven by a double-digit rise in output in Sabah. He also described demand as subdued and said the market cannot ignore these two pressures.

Dalian soyoil dropped 0.27% and Dalian palm oil slid 1.43%, while Chicago soyoil eased 0.63%, reflecting how palm follows rival edible oils. Crude held near a two-week low as Gulf supply improved, and weaker crude makes palm less appealing as a biodiesel input, while diesel refining margins hit a record on possible limits to US diesel exports. European Commission figures showed EU soybean imports for 2026/27, a season starting in July, stood at 2.67 million tons through September 20, a 14% fall, while palm oil imports dropped 26% to 0.56 million tons.