Palm Oil Prices Dip as Inventory Estimates Rise
The Malaysian palm oil market saw a decline in prices due to expectations of rising inventories and sluggish export demand. The benchmark October contract on Bursa Malaysia fell by 8 ringgit, or 0.17%, to 4,678 ringgit ($1,144.32) per ton.
The market is anticipating further growth in Malaysian palm oil stocks, which could be at a five-month high in July, as production outpaced demand. The Malaysian Palm Oil Board is set to release its July production, inventory, and demand figures on August 10, along with estimates of Malaysian palm oil exports for August 1-10.
Palm oil did receive some support from higher crude oil prices, which improved its competitiveness as a feedstock for biodiesel production. The slight weakening of the Malaysian ringgit against the U.S. dollar could also boost exports by making palm oil cheaper for foreign buyers.