Palm Oil Under Pressure to Begin 2026 Trading

2026-01-02 05:39 By Farida Husna 1 min. read

Malaysian palm oil futures slipped around 1% to around MYR 4,000 per tonne on Friday, the first trading day of 2026, pressured by weaker exports at year-end.

Cargo surveyors noted December shipments fell 5.2%–5.8% from November, reinforcing demand concerns.

Also, caution mounted ahead of December production data, after November output dipped 5.3% mom to 1.94 million tonnes.

Meantime, top grower Indonesia set its January crude palm oil reference price at USD 915.64 per tonne, down from USD 926.14, indicating softer pricing.

Still, losses were capped by signs of recovering demand from India, the world’s largest palm oil buyer, as imports rose modestly in November with refiners capitalizing on lower prices.

Malaysia continued to diversify export markets toward Africa and the Middle East amid EU trade challenges.

In 2025, palm oil prices plunged by nearly 9%, after the prior year’s solid gains, dragged by weaker crude, weather disruptions, and tighter sustainability rules in major markets.



News Stream
Palm Oil Eases
Malaysian palm oil futures fell slightly, hovering below MYR 4,620 as traders booked profits after a near two-week high in recent days. Sentiment weakened on softer edible oils in Dalian and sluggish exports, with cargo surveyors noting April 1–20 shipments down about 25.6%–25.8% from March amid the absence of festive demand. In the main consumer China, imports of key commodities, particularly soybeans, may fall this year, clouding the broader edible oil outlook. Still, palm oil is up around 3.7% so far this week, rebounding from losses in the prior two periods, lifted by a weaker ringgit and firmer crude prices due to Middle East shipping disruptions. Hopes of stronger demand from top buyer India also grew after March shipments fell 19% mom. Meantime, Malaysia is moving toward higher biodiesel blends, targeting B15 from the current B10. The policy could absorb 1–1-1/2 million tonnes annually, tightening supply as Kuala Lumpur follows Jakarta in expanding mandates to curb fuel imports.
2026-04-23
Palm Oil Strength Stretches to Third Day
Malaysian palm oil futures extended gains for a third straight session, holding near MYR 4,600 per tonne, lifted by a softer ringgit and firmer edible oil prices in Dalian and Chicago markets. On the demand side, purchases from top buyer India may rebound after March shipments fell 19% mom, suggesting restocking ahead. Meanwhile, Malaysia is advancing toward a B15 biodiesel mandate from the current B10, with an interim target of B12. The move is expected to absorb 1–1-1/2 million tonnes of palm oil annually, tightening exportable supply, as Kuala Lumpur follows Jakarta in expanding blending mandates to reduce imported fuel dependence. However, the upside was capped by weak export estimates, with cargo surveyors reporting April 1–20 shipments down about 25.6%–25.8% from March, partly due to the absence of festive demand. Turning to China, another main consumer, authorities signaled imports of key commodities, particularly soybeans, could decline this year, weighing on edible oil demand.
2026-04-22
Palm Oil Extends Gains
Malaysian palm oil futures increased for a second session, rising above MYR 4,500 per tonne, supported by a weaker ringgit and firmer edible oil prices on the Dalian and Chicago markets. Sentiment was also underpinned by expectations of a rebound in Indian demand after shipments to the world’s largest buyer fell 19% mom in March. In addition, Malaysia is moving in step with top producer Indonesia to expand its blending mandate, with the industry regulator projecting palm-based biodiesel consumption to increase by more than 300,000 tonnes annually. However, the upside was capped by softer crude oil prices, which tend to weigh on biofuel-linked demand. Export data also pointed to weakness, with cargo surveyors noting shipments of Malaysian palm oil products for April 1–20 fell between 25.6% and 25.8% from the prior month. In China, another major consumer, imports of key agricultural commodities, including soybeans, are also expected to decline this year, adding to demand-side caution.
2026-04-21