Palm oil falls as August inventories rise more than expected
10/09/2024 (Reuters), New Delhi - Malaysian palm oil futures fell on Tuesday after data showed inventories in the world's second-largest producer rose more than expected last month.
The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange was down 15 ringgit, or 0.39%, at 3,880 ringgit ($890.52) a metric ton by the midday break.
Malaysia's palm oil stocks at the end of August rose 7.34% from the previous month to 1.88 million metric tons, the highest level in six months, the Malaysian Palm Oil Board (MPOB) said.
Crude palm oil production gained 2.87% to 1.89 million tons, while palm oil exports fell 9.74% to 1.53 million tons, the board said.
A Reuters survey had forecast inventories at 1.86 million tons, with output seen at 1.89 million tons and exports at 1.5 million tons.
Palm oil may retest support at 3,856 ringgit per ton, a break below which could trigger a fall to 3,833 ringgit, Reuters technical analyst Wang Tao said. TECH/C
Oil prices edged down as weak Chinese demand offset supply disruptions from Tropical Storm Francine and as global oil oversupply risks continued to weigh on the market. O/R
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
Asian stocks inched higher but struggled to sustain an upbeat rally on Wall Street as concerns about a faltering Chinese economy dampened the market mood. MKTS/GLOB