Palm oil futures fell below the MYR 3,900 on Friday, the lowest in four weeks on expectations of strong supplies and ending stocks. The output in Malaysia, the world’s second-largest producer, is expected to rise sharply as the country is set to enter peak production months. At the same time, competitive pricing from top producer Indonesia is set to reduce export demand in Malaysia. Even though Indonesia lowered the threshold on its export levy, prices faced downward pressure as the government extended the levy waiving period until the end of October, signaling the need to rid supplies quickly as production picks up in Southeast Asia. Previously, Indonesia raised its export tax reference price for the September 1-15 period to $124 per tonne from the current $74 per tonne and also raised its 2022 biodiesel allocation.
