Palm oil set for worst quarter in 14 years on bulging reserves

[superadmin]

(Sept 30): Palm oil headed for its biggest quarterly plunge since 2008, as rising inventories in the world’s top growers and mounting concerns of a global economic recession outweighed recent robust exports.

Benchmark futures in Malaysia, which set the tone for global palm oil prices, have plummeted 31% in the July-September quarter, amid forecasts for surging supplies in Indonesia and Malaysia. That could provide some relief to consumers across the globe from high food inflation, as the tropical oil is found in many grocery items from chocolates to pastries and ice creams.

Growing worries about an economic slowdown slashing edible oil demand have further hammered palm, the world’s most-consumed cooking oil. Although exports from Malaysia surged almost 19% in the first 25 days of September from a month earlier, demand from top importer India could taper off in the coming weeks, as the festival season will end in late October with Diwali, the Hindu festival of lights.

- More -