📉 Palm Oil Market Update
Palm oil prices swung between gains and losses as traders weighed two key factors: a narrowing price gap with soybean oil and weaker-than-expected output in Malaysia, the world’s second-largest producer. The premium of soybean oil over palm has plunged nearly 80% since mid-June, now sitting at just $52/ton, according to Bloomberg. This shrinking spread could pressure palm oil’s competitiveness, especially in export markets. While Malaysia’s shipments rose nearly 13% in the first 25 days of September, the tighter margin may dampen future demand.
🌱 Soy Complex Snapshot
Soybeans closed modestly higher on short covering and technical buying, despite ending the week lower. Harvest weather across the U.S. Midwest remains favorable, and planting conditions in South America look promising. The major drag on soybean demand continues to be China’s reduced buying due to ongoing tariff tensions. Beijing has leaned heavily on Brazil and recently sourced large volumes from Argentina during a brief grain export tax suspension. India reportedly purchased 300,000 tons of Argentine soybean oil during that short window. Soybean meal futures rose, while soybean oil eased on product spread adjustments.
