Palm Oil Hits 13-week High

Malaysian palm oil futures fell for a second straight session on Tuesday, slipping below MYR 4,200 per tonne and hovering near their lowest in a week as markets reopened after a holiday. Prices were rattled by weakness in Dalian edible oils and a firmer ringgit. Sentiment was further weighed down by weak official PMI data from China, a key consuming country, raising concerns about near-term demand. However, losses were partly capped by stronger import data from top buyer India, where palm oil imports surged 51% in January to a four-month high, as the tropical oil’s deep discount to rival soyoil encouraged refiners to ramp up purchases. Turning to Indonesia, the world’s largest producer, the statistics bureau reported exports of 23.61 million metric tons of crude and refined palm oil in 2025, up 9.1% year on year. Meanwhile, Malaysian palm oil product exports rose 17.9% in January to 1.46 million metric tons from December, according to Intertek Testing Services.

Malaysian palm oil futures slipped around 2% to below MYR 4,240 per tonne on Friday, ending a four-session rally as traders booked profits after prices hit a three-month high earlier in the week. Weakness in rival edible oils on the Dalian and Chicago exchanges added pressure, compounded with caution ahead of the January PMI releases in key buyer China. Still, futures remain on track for a fourth weekly gain, up about 1.8%, which would mark the first monthly rise in five months with gains nearing 5%. The broader uptrend is buoyed by stronger export demand, with January 1–25 shipments up 7.97%–9.97% from December. Seasonal demand ahead of the Lunar New Year and Ramadan, coupled with forecasts of lower January output due to adverse weather and harvesting patterns, also support prices. In India, the top buyer, refiners canceled soybean oil imports from South America amid a weaker rupee and higher global prices, boosting palm oil’s appeal. Markets will be closed Monday for a holiday.

Malaysian palm oil futures extended gains for a fourth straight session on Thursday, trading above MYR 4,300 per tonne and holding a three-month high. Prices were lifted by strength in edible oil markets on the Dalian and Chicago exchanges, a weaker ringgit, and firmer crude oil, which improved overall risk appetite. Export momentum reinforced the upside, with cargo surveyors reporting shipments for January 1–25 rose between 7.97% to 9.97% from December. Seasonal demand ahead of Lunar New Year and Ramadan also underpinned sentiment, while expectations of a sharp January output drop due to weather and harvesting patterns added support. India, the world’s largest palm oil consumer, further bolstered demand as buyers cancelled soybean oil shipments from South America amid a weaker rupee and rising global prices, widening the price gap and making palm oil more attractive. Gains were capped, however, by caution ahead of China’s January PMI release, given its importance as a key buyer.