Palm Oil Extends Losses

Malaysian palm oil futures fell over 1% to below MYR 4,450 per tonne, down for the second session as traders digested monthly data from the Malaysian Palm Oil Board. Palm oil stocks at the end of August rose 4.18% from July to 2.2 million tonnes, while production grew 2.35% to 1.86 million tonnes and exports slipped 0.29% to 1.32 million tonnes. Weakness also came from falls in rival oils on the Dalian and Chicago exchanges. In China, a key consumer, August data showed consumer prices shrank the most in six months, while producer prices contracted for the 35th straight month. Still, losses were limited by expectations of strong demand from top buyer India ahead of the mid-October festive season. India’s palm oil imports surged 16% in August to 993,000 tonnes, the highest since July 2024, as refiners built stocks, with palm oil holding a steep discount to soyoil. In broader energy markets, oil prices jumped on rising Middle East tensions and renewed fears of Western sanctions on Russia.