29.09.202604:03:33UTC+00Palm Oil Drops to Eight-Week Low as Exports Slump, Supply Rises

Malaysian palm oil futures extended their recent decline, trading below MYR 4,650 per tonne and hitting an eight-week low, pressured by weaker edible oil prices on the Dalian exchange and subdued export demand. Cargo surveyor data showed that palm oil shipments in the first 25 days of September fell by 15.1%–24.3% compared with the same period in August. At the same time, expectations of seasonally higher output have raised concerns that end-September inventories could surpass 3 million tonnes. Industry estimates indicated a sharp increase in production, with output in the first 25 days of September up 20.84% from August.

Downside moves were partially limited by stronger crude oil prices amid persistent uncertainty surrounding U.S.–Iran negotiations, which in turn supported demand for palm oil as a biodiesel feedstock. In Indonesia, palm oil exports fell 9.87% year-on-year to 3.19 million tonnes in July, according to a domestic palm oil association, reinforcing worries about regional demand. Market participants are now awaiting China’s September PMI releases for further signals on economic activity and the outlook for commodity demand.