Palm extends losses on expectations of record October inventories

Malaysian palm oil futures fell for a third consecutive session on Wednesday, with the January contract down 1.21% to 4,496 ringgit ($1,103.31) per metric ton by midday. Business Recorder reported that expectations of a record inventory level in October, alongside losses in Dalian palm oil, weighed on the market.

A Reuters poll put Malaysia’s palm oil stocks at 3.75 million tons, up 6.8% from September’s record 3.51 million tons. Declines in Dalian soyoil and palm oil, as well as Chicago soyoil, added pressure; weaker crude prices also reduced palm oil’s appeal as biodiesel feedstock, while a stronger ringgit made it costlier for foreign-currency buyers. Investors tracking edible-oil and commodity markets will be watching inventory estimates and movements in competing oils and crude.