10.09.202505:20:27UTC+00Palm Oil Extends Losses

Malaysian palm oil futures declined by over 1%, dropping below MYR 4,450 per tonne, marking a second consecutive session of downturn as traders evaluated the latest monthly report from the Malaysian Palm Oil Board. At the close of August, palm oil inventories increased by 4.18% from the previous month, reaching 2.2 million tonnes. Meanwhile, production saw a rise of 2.35% to 1.86 million tonnes, and exports experienced a slight decrease of 0.29% to 1.32 million tonnes. The market faced additional pressure from declines in competing oils on the Dalian and Chicago exchanges. In China, a major consumer, August figures revealed the steepest contraction in consumer prices in six months, with producer prices marking a consistent decline for the 35th consecutive month. Nevertheless, market losses were tempered by the anticipation of robust demand from India, a leading buyer, as the country approaches its mid-October festive season. In August, India's palm oil imports jumped 16% to 993,000 tonnes, the highest since July 2024, driven by refiners increasing their stocks due to palm oil's significant price advantage over soyoil. In the broader energy market, oil prices surged amid escalating Middle East tensions and the rekindled threat of Western sanctions on Russia.