Palm Oil Extends Decline on Weak Demand And Stronger Ringgit

Palm oil fell for a second session due to waning exports from Malaysia and a stronger ringgit.

Palm oil shipments from No. 2 producer Malaysia dropped 20% during the first 20 days of November compared to the same period a month before, according to Intertek Testing Services. Sales to Africa halved while exports to the European Union also fell sharply.

“It looks like demand is on a weakening path and likely will last through the whole month,” said David Ng, a senior trader at IcebergX Sdn in Kuala Lumpur. Production is also expected to rise marginally in November, which may further soften prices, he said.

Palm futures were also pressured by a stronger ringgit, making Malaysian sales more expensive to overseas buyers.