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2026-09-21 21:34:13
[Palm Oil Continues to Fall, Weak Crude Oil and Stronger Ringgit Pressure] ⑴ Malaysian palm oil futures closed lower for the second consecutive trading day on Monday, pressured by a stronger ringgit, weaker crude oil prices, and sluggish exports. ⑵ The benchmark December delivery contract closed down 41 ringgit, or about 0.8%, at 4,857 ringgit per tonne on the Bursa Malaysia Derivatives Exchange. ⑶ A trader in Kuala Lumpur said the market was pressured by falling oil prices and a stronger ringgit, with a decline in open interest on Friday also reflecting low market participation. ⑷ Oil prices fell to an 11-day low as investors held onto hopes for diplomatic progress in the Iran war and focused on signs of a partial recovery in Saudi Arabian exports. ⑸ Weak crude oil prices reduced the attractiveness of palm oil as a feedstock for biodiesel. ⑹ Freight surveyors estimated that Malaysian palm oil product exports from September 1 to 20 fell by 12.8% to 24.7% compared to the same period last month. (7) In Dalian, the most active soybean oil contract fell by about 0.1%, and the palm oil contract fell by about 0.9%; soybean oil prices on the Chicago Board of Trade fell by about 0.5%. (8) Palm oil follows the price trends of competing edible oils as it competes for market share in the global vegetable oil market. (9) The ringgit appreciated by about 0.02% against the US dollar, making the commodity slightly more expensive for buyers holding foreign currency. (10) Overall, the weakness in crude oil and competing edible oils, coupled with poor export data, put short-term pressure on palm oil. Going forward, attention should be paid to the impact of the Middle East situation on oil prices and whether Malaysian exports can improve before the end of the month.
