Palm prices slip for the fourth session due to fears of stockpiles and weak demand

Malaysian palm oil futures fell more than 1% in the last session on Wednesday, marking a fourth consecutive session of declines, due to expectations that inventories would rise and demand would be weak.

By midday, the benchmark palm oil contract for December delivery at the Bursa Derivatives exchange in Malaysia had fallen 71 ringgit or 1.48 % to 4,739 Ringgit ($1,163.80).

Market participants are aware that the end-stocks of agri-products could reach 3 million metric tonnes, or even slightly more, by September. This is due to a two-digit rise in production, especially?in Sabah.

"Demand?also remains sluggish, and the market can't escape the influence of both these overarching factors," he added.

Exports of Malaysian Palm Oil Products 'for September 1-20' fell between 12.8% to 24.7% compared to the previous month.

Dalian's palm oil contract, which is the most active contract, fell by 1.79%. Chicago Board of Trade soyoil prices were down by 0.97%.

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

Saudi Arabia began restoring crude supplies on a pipeline that is critical to reaching the Red Sea and there were hopes of a diplomatic resolution to the US-Iran conflict through UN talks in New York.

Palm oil is less attractive 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 ago, and palm oil imports were down 26% at 0.56 million tonnes.

(source: Reuters)