12.09.202504:04:48UTC+00Palm Oil Poised for Modest Weekly Drop

Malaysian palm oil futures have decreased to below MYR 4,450 per tonne, reversing the gains from the previous session. This decline is attributed to a stronger ringgit and projections of peak production in September and October due to favorable weather conditions. Over the week, contracts have dipped by 0.2%, poised to discontinue last week's upward trend as demand seems less robust. According to cargo surveyors, Malaysia's palm oil shipments between September 1–10 fell by 1.2% to 8.4% compared to the same period in August, highlighting weak export activity. Additionally, industry data indicated that end-August inventories increased by 4.2% from July, reaching 2.2 million tonnes, which adds pressure on supply. In the broader energy sector, crude oil prices continued to decline amid concerns about weakening demand in the U.S. and an ongoing global supply surplus. However, expectations of increased purchases from India leading up to the mid-October festive season, a time when the demand for edible oils typically rises, helped to mitigate more significant losses.