Palm closes lower on rising stockpile concerns

Business Recorder reported that Malaysian palm oil futures ended lower on Tuesday, as worries about higher September inventories and softer crude prices pressed the market. The December contract on the Bursa Malaysia Derivatives Exchange slipped 18 ringgit, or 0.39 per cent, to close at 4,560 ringgit ($1,117.10) per metric ton.

According to David Ng, a proprietary trader at Iceberg X Sdn Bhd, expectations of elevated September stock levels kept gains in check. A Reuters survey indicated that Malaysian inventories could hit an all-time high in September, surpassing the December 2018 peak, as output reached record volumes while export demand remained sluggish.

Crude oil fell more than 2 per cent after higher Middle Eastern exports and a G7 emergency release from diesel and crude reserves eased supply worries, although regional security risks limited the decline. Weaker crude futures reduce the appeal of palm as a biodiesel feedstock, while Chicago soyoil fell 0.58 per cent and the ringgit gained 0.07 per cent against the dollar.