Palm falls for second session on stockpile fears

Malaysian palm oil futures fell for a second straight session on Wednesday, Business Recorder reported, as worries over rising stockpiles weighed on prices. The benchmark December contract on the Bursa Malaysia Derivatives Exchange closed 36 ringgit lower, a decline of 0.79%, at 4,524 ringgit ($1,107.20) per metric ton. Firmer crude prices cushioned the losses.

A Kuala Lumpur trader said the market stayed under pressure, especially in nearby contracts, because palm inventories were high. A Reuters survey showed palm oil inventories in Malaysia are expected to reach an all-time high in September, above the December 2018 peak, as output hit record levels while export demand lagged. Soyoil on the Chicago Board of Trade slipped 0.64%, and the Dalian Commodity Exchange is closed for a public holiday until Thursday.

Brent held above $100 a barrel, with traders balancing expanded Gulf shipments against Middle East supply concerns and a storm approaching US oil-producing regions. Crude strength makes palm look more appealing for biodiesel production, since it can serve as a feedstock, while the ringgit fell 0.1% against the dollar, leaving the commodity slightly cheaper for buyers holding other currencies.