Palm oil falls for third session on weaker Dalian rivals

Business Recorder reported that Malaysian palm oil futures slid for a third day on Tuesday, touching their weakest level in eight weeks. The December contract on the Bursa Malaysia Derivatives Exchange was 35 ringgit lower, or 0.75%, at 4,629 ringgit ($1,134.56) per metric ton at midday.

Softer Dalian prices for competing vegetable oils, along with forecasts of bigger September stocks, pressured the contract. A trader in Kuala Lumpur pointed to negative sentiment, citing expected high endstocks from strong output and weaker September shipments. Cargo inspectors Intertek Testing Services and AmSpec Agri Malaysia estimated that shipments from September 1 to 25 dropped between 15.1% and 24.3% compared with a month before, while Malaysian stocks at the end of August rose to an eight-month high.

Dalian's leading soyoil contract slipped 0.23%, its palm contract declined 1.04%, and Chicago soyoil rose 0.72%. Crude oil gained for a second session as worries over Middle East supply disruption linked to the US-Iran conflict outweighed signs of exports recovering, and firmer crude makes palm more appealing as a fuel input. Indonesia's palm oil exports in July totaled 3.19 million tons, 9.87% lower than the previous year, according to the GAPKI palm oil association.