SINGAPORE: Palm oil prices have dropped to the lowest since early August as peaking production and flagging demand prompted worries over swollen inventories in the world’s second-biggest grower Malaysia.
Benchmark futures fell as much as 1.3% to RM4,750 per tonne, the lowest intraday level since Aug 3.
It’s the fifth day of declines and the longest losing streak since late February.
Crude oil and vegetable oils also fell across the board.
The market is “deeply concerned with rising output and sluggish exports,” said David Ng, a senior trader at IcebergX Sdn.
With production peaking as usual in September and October, and demand faltering in key markets like India, China and Pakistan, Malaysia’s inventories are set to hit a record above three million tonnes this year, said Abdul Hameed, director of sales at Manzoor Trading Co.
Reserves rose for the fifth straight month to above 2.8 million tonnes in August, the highest level this year.
They were last above three million tonnes in December 2025.
“Near-term bias remains bearish, with further downside risk unless exports improve, production slows or energy prices recover meaningfully,” Hameed said. — Bloomberg
