Malaysian Palm Oil Closes Lower on High Stocks and Output Increase Expectations

【Malaysian palm oil closes lower, pressured by high stocks and output increase expectations】

⑴ David Ng, a trader at Iceberg X in Kuala Lumpur, said Malaysian palm oil prices closed lower as market concerns persisted over high Malaysian inventories, alongside expectations of strong October production, despite some improvement in export demand.

⑵ He expects crude palm oil futures to find support at around 4,650 ringgit per ton, with resistance above at approximately 4,850 ringgit per ton.

⑶ Traders are closely monitoring soybean oil and crude oil price movements for further directional cues.

⑷ The January delivery contract on the Malaysian derivatives exchange closed about 87 ringgit lower at approximately 4,702 ringgit per ton.

⑸ Going forward, attention will focus on the realization of Malaysian inventory and production data, as well as the correlation with related vegetable oils and energy prices; if output increase expectations continue to strengthen, the rebound space for palm oil may be limited.