Palm closes near 8-month low on inventory worries, weaker rival oils

Malaysian palm oil futures fell 2.69% on Thursday, with the January contract ending at 4,375 ringgit a ton, its lowest close since March 6. Business Recorder reported that expectations of stronger production and rising inventories, together with declines in competing vegetable oils, weighed on prices.

A Reuters survey projected Malaysia’s palm oil stocks at 3.75 million tons in October, up 6.8% from September’s record 3.51 million tons. Indonesia could increase exports over the next two months, while Malaysia’s October supply and demand figures are due on November 10. Lower soyoil prices in Dalian and Chicago added pressure, while firmer crude prices supported palm oil’s appeal as a biodiesel input and a stronger ringgit made it costlier for foreign-currency buyers.