Palm oil falls for third session on weaker Dalian rivals

Jakarta, Malaysia - Malaysian palm oil futures took a tumble for the third consecutive day, hitting their lowest level in eight weeks on Tuesday. The decline was largely attributed to a weaker performance in rival Dalian vegetable oils, as well as expectations of a rise in inventory for September, according to Reuters.

The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange dropped 35 ringgit, or 0.75%, to 4,629 ringgit ($1,134.56) per metric ton by midday. A trader in Kuala Lumpur remarked that market sentiment was "bearish, expecting high final stocks due to high production but lower export figures for September."

Malaysian palm oil exports for the period of September 1-25 were projected to decline between 15.1% and 24.3% compared to the previous month, as per cargo surveyors Intertek Testing Services and AmSpec Agri Malaysia. The inventory of Malaysian palm oil reached its highest level in eight months by the end of August.

Meanwhile, Dalian's most-active soyoil contract experienced a minor decline of 0.23%, while its palm oil contract fell 1.04%. In contrast, soyoil prices on the Chicago Board of Trade rose by 0.72%. Palm oil prices are influenced by the movements of rival edible oils, as they compete for a share of the global vegetable oils market.