Palm Oil Poised for Modest Weekly Drop

Malaysian palm oil futures fell below MYR 4,450 per tonne, reversing the prior session’s gains as a stronger ringgit and expectations of peak output in September–October amid favorable weather weighed on sentiment. For the week, contracts are edged down 0.2% so far, on track to snap last week’s advance, as demand prospects looked less firm. Cargo surveyors reported that Malaysia’s palm oil shipments during September 1–10 dropped between 1.2% and 8.4% from the same period in August, underscoring weak export momentum. At the same time, industry data earlier this week showed end-August stocks rose 4.2% from July to 2.2 million tonnes, adding supply pressure. In broader energy markets, crude oil extended declines amid concerns over softening U.S. demand and a persistent global supply glut. Still, hopes for stronger buying from India ahead of the mid-October festive season, when demand for edible oils typically rises, helped limit steeper losses.