Palm hits four-month low on expectations of record October stocks

Malaysian palm oil futures fell for a third session on Wednesday, with the January contract settling at 4,496 ringgit per metric ton, down 55 ringgit or 1.21%. Business Recorder reported that this was the contract’s lowest close since July 3, marking a four-month trough.

Expectations of a record build in Malaysian inventories weighed on trading: a Reuters poll put October stocks at 3.75 million tons, up 6.8% from September’s then-record 3.51 million tons. Weakness in Dalian palm olein added pressure, while stronger crude oil prices and a 0.34% rise in the ringgit shaped the wider market backdrop. Palm oil competes with other vegetable oils and is also used as biodiesel feedstock, so the move is relevant to edible-oil and related commodity markets.