Palm hits one-month low as stockpile concerns weigh

Malaysian palm oil futures plunged to a one-month low on Tuesday due to mounting concerns over increasing stockpiles, according to the Bursa Malaysia Derivatives Exchange. The January delivery contract for palm oil plummeted 97 ringgit, or 2.09%, to 4,552 ringgit ($1,117.88) per metric ton, marking its lowest close since October 7.

Trading of palm oil futures was cautious and downward as elevated inventories continued to hinder any upward movement, as noted by David Ng, a proprietary trader from Iceberg X Sdn Bhd in Kuala Lumpur. Malaysia's palm oil inventories are projected to reach a new peak in October, with Reuters reporting that export figures for the month rose between 45.4% and 73.5% compared to the previous month due to a rebound in exports.

Cargo surveyors estimated that exports of Malaysian palm oil products surged during October. Meanwhile, Dalian's most-active soyoil contract declined by 1.38%, and its palm oil contract dipped by 0.99%. Soyoil prices on the Chicago Board of Trade experienced a 0.18% decrease. Palm oil follows the price trends of other edible oils as it competes for a share of the global vegetable oils market.

However, oil prices surged over $1 as an Iranian official stated that a deal to end the war was unlikely, while the United States targeted Iran's Qeshm Island, sparking apprehensions over escalating hostilities and potential disruptions to energy supplies. The weakening of the ringgit, the currency used for trading palm oil, by 0.17% against the dollar made the commodity slightly more affordable for buyers holding foreign currencies.