Palm oil prices slip as drop in exports surpasses shrinking stocks

In Malaysia, Reuters reports that even though palm oil stocks have been tightening in recent months, exports during the first 10 days of October fell by 7.5%, below expected levels, which in turn weighed on prices this week. The front month October delivery contract fell to $1,173.18 per metric ton, down nearly 1.3% at midday Tuesday compared to the market’s open on the Bursa Malaysia Derivatives Exchange. Indian demand is expected to fall as it enters its winter season, so the surge in exports seen recently is not likely to sustain through the rest of the year.