Commodities
Palm Oil Prices Plummet to Eight-Week Low Amid Export Slump
Palm oil prices have fallen to an eight-week low due to weaker exports and higher supply. Malaysian palm oil futures are trading below MYR 4,650 per tonne. The decline is attributed to a 15.1%, 24.3% decrease in shipments in the first 25 days of September compared to August.
The rise in production has also contributed to the downward trend. Industry estimates show that output is up 20.84% in the first 25 days of September from August, raising concerns about end-month stocks exceeding 3 million tonnes.
Firmer crude oil prices have supported demand for palm oil as a biodiesel feedstock, capping losses. However, Indonesia's palm oil exports fell 9.87% year-over-year to 3.19 million tonnes in July, adding to concerns over regional demand.