Palm Oil Prices Slump Amid Rising Inventories and Weak Exports

Palm oil futures are experiencing their second consecutive weekly decline due to rising inventories and weak demand. Malaysian palm oil futures have fallen below MYR 4,550 per tonne, their lowest level since mid-July.

The August stocks of palm oil reached an eight-month high, with expectations that September's stock will surpass 3 million tonnes. This increase in inventory is putting pressure on sentiment.

Palm oil exports are also experiencing a drop, estimated to be between 17.1% and 28.8% compared to last month. The closure of China's Dalian markets during the Golden Week holiday has limited trading cues.

However, forecasts suggest that India will maintain steady palm oil imports in the 2026/27 marketing year following an import-duty cut. Lower edible-oil duties ahead of the festive season could also support near-term demand. Elevated crude oil prices are providing additional support due to persistent Middle East uncertainty.