Palm flat as stockpile concerns cap gains

Business Recorder reported that Malaysian palm oil futures were almost unchanged on Tuesday, as firmer crude prices were offset by worries about larger September stockpiles. The December contract on the Bursa Malaysia Derivatives Exchange added 2 ringgit, or 0.04%, to 4,580 ringgit ($1,121.45) per metric ton by midday.

David Ng of Iceberg X Sdn Bhd credited the advance to firmer crude and fresh buying after Monday's rebound, but expected heavy September inventories to limit upside. A Reuters survey projects Malaysian stocks reaching an all-time high in September, above the December 2018 peak, as record output outstrips slow exports.

Elsewhere, the ringgit firmed 0.02% against the dollar, which slightly raises palm's cost for foreign buyers. Indian sunflower oil imports fell in September to their lowest in over four years, prompting refiners to raise palm oil purchases to a seven-month high, according to five dealers. Reuters analyst Wang Tao identified a possible 4,656 to 4,677 ringgit per metric ton range, based on wave pattern and channel analysis.