Malaysian Palm Oil Futures Continue Downward Trend Amid High Inventories
Malaysian palm oil futures have continued their decline for a fourth consecutive session, marking their first monthly fall in four months. The benchmark contract for December delivery on the Bursa Malaysia Derivatives Exchange fell by 12 ringgit, or 0.26 percent, to 4,612 ringgit (USD 1,132.06) a metric ton.
The decline capped a weaker September performance, with the benchmark contract falling 5.76 percent during the month. Market participants are focusing on inventory trends, awaiting the release of September-end stock data from the Malaysian Palm Oil Board on October 12.
High inventories and weaker exports are adding to the bearish sentiment in the market. Rival vegetable oils showed stronger performance, with Dalian's most-active soyoil contract surging 1.32 percent and its palm oil contract gaining 0.1 percent.