Palm oil prices fall for the fourth consecutive session due to concerns over stockpiles and weak demand

Malaysian palm futures declined?for a fourth consecutive session on Wednesday, as rising inventories and weaker demand weighed?on the market.

The benchmark palm oil contract for December delivery on the Bursa Derivatives exchange fell 42 ringgit or 0.87% to 4,768 Ringgit ($1,169.49).

According to Paramalingam Supramaniam of Selangor brokerage Pelindung Bestari, the market is aware that end stocks will likely increase by 3 million metric tonnes, or slightly more,?by September's end, due to a double-digit rise in production in particular in the state?Sabah.

He added that "Demand is also sluggish, and the market can't escape the influence of both these factors."

Exports of palm oil products from Malaysia for the period September 1 to 20?were estimated by cargo surveyors as falling between 12.8% and 24,7% compared with a month ago.

Dalian's palm oil contract, which is the most active contract in Dalian, fell by 1.43%. Chicago Board of Trade soyoil prices were down by 0.63%.

As it competes to gain a share in the global vegetable oil market, palm oil closely tracks the price fluctuations of competing edible oils.

The oil prices remained near their lowest levels in more than two weeks, as improved Gulf crude supplies weighed heavily on the market. However, diesel refining margins reached a record-high due to potential restrictions on US diesel exports.

Palm oil is less appealing as a biodiesel feedstock due to the weaker crude oil futures.

Data from the European Commission showed that by September 20th, soybean imports into the European Union for season 2026/27, which began in July, had fallen?14% compared to a year earlier, and palm oil imports were down 26% at 0.56 million tonnes.

(source: Reuters)