Palm falls nearly 2% on weaker Dalian oils, high stockpiles

Malaysian palm oil futures dropped 1.82% on Tuesday to 4,702 ringgit per metric ton, extending their decline for a second session, Business Recorder reported. Weakness in Dalian-traded oils and heavy Malaysian inventories weighed on the market. Dalian soyoil fell 2.62% and its palm oil contract lost 3.54%, while Chicago soyoil was down 0.42%.

LSEG Agriculture Research said October prices had earlier gained support from production concerns linked to El Nino and stronger Indonesian biodiesel demand, but record Malaysian stocks could restrict further advances. September inventories reached 3.51 million metric tons as output hit a record, while estimates put Malaysian palm product exports for October 1-25 up 46.9% to 67.7% from the previous month. Crude oil’s recovery and a 0.05% weaker ringgit also featured in the market picture.