Palm oil hits three-month low on weaker soyoil, demand worry
21/09/2023 (The Edge Malaysia) - Palm oil fell to its lowest level in almost three months on concerns about poor demand and rising production, with losses in soybean oil putting further pressure on the tropical oil.
Futures in Kuala Lumpur fell 1.2% to close at RM3,677 a tonne, the lowest level since June 27. Soyoil, palm’s closest food and fuel substitute, slumped for a fourth day in Chicago to the lowest since August.
Palm succumbed to selling pressure in US soyoil and Dalian vegetable oil markets, while demand remains a major concern, according to Paramalingam Supramaniam, a director at Pelindung Bestari, a Selangor-based broker.
Prices are further weighed by rising production in the second-biggest grower Malaysia, especially in its top-producing states of Sabah and Sarawak, he said.