Palm oil falls to 11-week low on weak exports, rising output

Business Recorder reported that Malaysian palm oil futures slid to an 11-week low on Thursday, as Chicago soyoil weakened and traders worried about lighter September shipments alongside higher production. The December contract on the Bursa Malaysia Derivatives Exchange lost 57 ringgit, or 1.24%, to close at 4,553 ringgit, worth $1,115.11 per metric ton.

A Kuala Lumpur trader described local sentiment as bearish, pointing to sharper output, slower shipments and stocks that could exceed 3 million tonnes, even though external markets gave some support. Cargo surveyors Intertek Testing Services and AmSpec Agri Malaysia put Malaysian September exports between 17.1% and 28.8% lower than the previous month, while Indonesia's January to August exports of crude and refined palm oil reached 16.13 million metric tons, down 0.39% from a year earlier.

Crude prices climbed around 2% on Thursday once China halted exports of oil products, and a trade ministry regulation set Indonesia's October crude palm oil reference price at $1,042.15 per ton. Higher crude improves palm's appeal as a biodiesel raw material, while the ringgit's 0.2% fall against the dollar lowers the cost for overseas purchasers.