Palm hits one-month low as stockpile concerns weigh

Malaysian palm oil futures fell 2.09% on Tuesday to 4,552 ringgit a metric ton, their lowest closing level since October 7. Business Recorder reported that traders were concerned about rising inventories, with the January contract losing 97 ringgit.

A Reuters survey indicated Malaysia’s stocks could reach a fresh high for October, as record output outweighed an export recovery. October shipments were estimated to have increased 45.4% to 73.5% from the previous month; competing soyoil contracts also declined in Dalian and Chicago. Higher crude prices offered some support because they can make palm oil more appealing as biodiesel feedstock, while a weaker ringgit reduced its cost for buyers using other currencies.