Palm falls for second session on stockpile fears

Malaysian palm oil futures plummeted for the second consecutive trading day on Wednesday, driven by worries over escalating inventories, although higher crude oil prices helped mitigate the decline. The December December delivery contract on Bursa Malaysia Derivatives Exchange fell 36 ringgit, or 0.79%, to 4,524 ringgit ($1,107.20) per metric ton at the close.

Traders expressed concern over the lack of recovery in prices, despite a rise in crude oil costs. Malaysia's palm oil stockpiles are projected to reach a record high in September, surpassing the December 2018 peak, as production skyrocketed to record levels while export demand remained sluggish, according to a Reuters survey. Soyoil prices on the Chicago Board of Trade also declined by 0.64%.

The Dalian Commodity Exchange is on a holiday and will reopen on Thursday. Palm oil mirrors the price movements of other edible oils, competing for a slice of the global vegetable oils market. Crude oil prices held steady, with Brent futures remaining above $100 a barrel as investors balanced higher Gulf exports against ongoing risks from the Middle East conflict and a storm approaching oil-producing areas in the United States.

The Malaysian ringgit, the commodity's trading currency, slipped by 0.1% against the dollar, making it marginally less expensive for international buyers. Meanwhile, Indonesia's forestry task force transferred nearly 260,000 hectares of seized land to the national forestry ministry, with over half going to Agrinas Palma Nusantara, a state-owned palm oil plantation corporation.