Palm falls to near three-week low on weaker rival oils, higher stocks

Malaysian palm oil futures fell 1.47% on Thursday, with the January contract settling at 4,616 ringgit ($1,131.32) per metric ton. Business Recorder reported that this was the contract’s lowest close since October 9, extending its decline to a fourth consecutive session. The price also dropped 69 ringgit during the session.

Pressure came from falling prices for competing edible oils and concern that Malaysia’s October palm oil inventories could rise as production increases. A Kuala Lumpur-based trader also pointed to the lack of an announcement on removing Malaysia’s crude palm oil export tax. Dalian soyoil fell 0.71% and palm oil declined 2.38%, while Chicago soyoil was down 1.46%. Lower crude prices and a 0.42% stronger ringgit against the dollar added to the commodity’s headwinds, affecting biodiesel competitiveness and the cost for overseas buyers.