Palm Oil Below MYR 4,050 Ahead of Lunar Holiday

Malaysian palm oil futures hovered below MYR 4,050 per tonne on Monday, reversing modest gains from the prior session amid a stronger ringgit and softer exports. Cargo surveyors estimated Malaysian palm oil shipments for February 1–15 fell between 11.2% and 14.9% mom, reinforcing concerns over near-term demand. Prices held around their lowest levels in four weeks, with trading subdued ahead of the Lunar New Year break. Markets in Malaysia will be closed Tuesday and resume trading Thursday. The Dalian market is shut for the holidays until next week, while the Chicago exchange is also closed for a public holiday, limiting external cues. Still, some supportive factors emerged. India, the top buyer, boosted palm oil imports by 51% mom in January to a four-month high after December’s sharp drop. Meanwhile, monthly data from the industry regulator showed inventories fell 7.7%, and production dropped 13.8% in January, suggesting a tighter supply that could help cushion further downside.

Malaysian palm oil futures dropped below MYR 4,010 per tonne on Friday, extending losses for a fourth straight session and reaching a four-week low, dragged down by weakness in edible oil benchmarks on Dalian and Chicago markets. Lower export estimates also weighed on sentiment, with cargo surveyors reporting Malaysian shipments for February 1–10 fell between 10.5%–14.3% mom. The contract is set for a second weekly decline, off about 3.5% so far, as concerns over weak demand from key buyer China persisted after soft January CPI data, which came ahead of the Spring Festival. Prices also faced pressure from Indonesia’s pause on a higher biodiesel mandate, alongside expectations of stronger output in coming months. Still, the downside was cushioned by robust demand from top buyer India, with January imports surging 51% mom to a four-month high following a sharp drop in December. Meanwhile, Malaysia raised its March crude palm oil reference price, keeping the export duty unchanged at 9%.

Palm Oil decreased to 4010.00 MYR/T, the lowest since January 2026. Over the past 4 weeks, Palm Oil gained 0.17%, and in the last 12 months, it decreased 10.04%.