10/10/2023 (Nasdaq), Mumbai - Palm oil futures fell in early trade on Tuesday to their lowest level in 3-1/2 months on fears of an inventory build-up in Malaysia, where industry officials forecast production grew more than the exports during September.

The benchmark palm oil contract FCPOc3 for December delivery on the Bursa Malaysia Derivatives Exchange fell 56 ringgit, or 1.55%, to 3,549 ringgit ($750.00) per metric ton in morning trade.

It fell to ringgit earlier to 3,520 ringgit, the lowest level since June 23.

FUNDAMENTALS

* Malaysia's palm oil stocks at the end of September likely rose to the highest since October 2022 despite increased exports amid higher output, a Reuters survey showed last week.

The Malaysian Palm Oil Board (MPOB) is scheduled to release its data on Oct. 10.

* India's palm oil imports in September dropped 26% from a month ago after inventories jumped to record levels.

* Oil prices edged down slightly on Tuesday after gaining more than 4% in the previous session as markets weighed the potential for supply disruptions as the conflict between Israel and the Palestinian Islamist group Hamas continued.

* Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

* Soyoil futures on the Chicago Board of Trade BOc2 were down 0.82% in early Asian hours.

* Analysts polled by Reuters expect the U.S. Department of Agriculture in a report due on Oct. 12 to slightly downgrade its estimates for the U.S. corn and soy harvests.

MARKET NEWS

* Asian shares rose on Tuesday in line with Wall Street's high note and bonds also rallied, boosted by dovish Federal Reserve remarks, while oil prices edged down after Monday's surge with the market remaining focused on the conflict in the Middle East.

($1 = 4.7320 ringgit)

Source: Reuters

https://www.nasdaq.com/articles/vegoils-palm-oil-hits-3-1-2-months-low-on-stock-build-up-in-malaysia