Palm Oil Price Increase for 3rd consecutive day but heads for losses weekly

MALAYSIA, Sept. 15 – The world leading export of palm oil, Malaysian palm oil futures were trading near MYR 3,800, enjoying its upside momentum for the third straight session gains after a recent downturn that saw prices falling to as low as MYR 3,684, supported by gains in Chicago soybean oil.

Meantime, top palm oil buyer India imported 1.13 million metric tons of palm oil in August, a 3.9% increase from the prior month to the highest in 9 months.

In China, economic activity strengthened in August, with growth in retail sales and industrial output beating market consensus on the back of the peak summer holiday season.

On cargo data, exports of Malaysian palm oil products for Sept. 1-10 declined by 11.2% from a month earlier, surveyor Intertek Testing Services said.

Meanwhile, independent inspection company AmSpec Agri Malaysia estimated a 20.4% drop.

For the week, however, the contract is heading for the 2nd straight fall, rattled by a 22.5% jump in inventories of Malaysian palm oil at the end of August to a 7-month high of 2.12 million tons.