23.09.202504:00:02UTC+00Palm Oil Slumps to 6-Week Low

Malaysian palm oil futures experienced a significant decline of approximately 3.5%, dropping below MYR 4,230 per tonne and reaching their lowest point in six weeks. This downturn erased the modest gains observed in the previous session. The decrease came on the heels of the Malaysian Palm Oil Council's forecast of a price range between MYR 4,200–4,500 in the coming weeks, citing a tight supply of vegetable oil against a backdrop of subdued demand from key markets. Additionally, declines in competing edible oils on the Dalian and Chicago exchanges contributed to the downward pressure. Anticipation of peak palm oil production from September to October, driven by favorable weather conditions, and an increase in end-August stock levels by 4.2% from July to 2.2 million tonnes, also played a role in shaping the market dynamics. However, further losses were somewhat mitigated by a weaker ringgit. On the export side, shipments from September 1–20 are projected to have risen by 8.3–8.7% compared to August. In India, one of the largest purchasers, demand is projected to remain robust in preparation for the mid-October festive season, with imports expected to surpass 800,000 tonnes in September, following a 13-month high of 990,528 tonnes recorded in August.