Palm Oil Prices Plummet to 11-Week Low on Weak Exports and Rising Output

Palm oil prices plummeted to an 11-week low on October 1 due to weak exports and rising output. The December contract on the Bursa Malaysia Derivatives Exchange fell by 57 ringgit, or 1.24%, to 4,553 ringgit ($1,115.11) per ton.

The decline was also influenced by a 0.59% drop in Chicago soyoil futures prices. Malaysian palm oil exports in September decreased by 17.1-28.8% from the previous month, while production increased.

Market participants expect inventories to exceed 3 million tons, which could weigh on the market. However, analysts predict that palm oil prices will remain within a range of 4,500-5,000 ringgit per ton through the end of the year.