Palm Oil Rises After Three-Session Slide

Malaysian palm oil futures rose to around MYR 4,070 per tonne on Wednesday, snapping a three-session losing streak as strength in rival edible oils on the Dalian and Chicago exchanges lent support. Meanwhile, demand from India, the world’s largest buyer, is expected to recover in 2026 amid improved price competitiveness, with imports potentially reaching 800,000 tonnes. Crude oil prices also hovered near multi-month highs amid heightened geopolitical tensions, offering additional support to palm oil. Domestically, the Malaysian Palm Oil Council expects prices to consolidate within the MYR 4,000–4,300 per tonne range in March. However, gains were limited by concerns over sluggish exports despite the ongoing Ramadan and the upcoming Eid al-Fitr festival. Cargo surveyors estimated shipments for February 1–20 fell between 8.9% and 12.6% from the prior month. Further pressure stemmed from ample global soybean supplies and rising Chinese soybean oil exports.

Malaysian palm oil futures hovered below MYR 4,080 per tonne on Tuesday, extending losses for a third straight session amid persistent concerns over weaker exports. Cargo surveyors estimated shipments for February 1–20 fell between 8.9% and 12.6% from the previous month, signaling softer demand despite Ramadan and the upcoming Eid al-Fitr celebration. The Malaysian Palm Oil Council also flagged risks from ample global soybean supplies and rising Chinese soybean oil exports, which could intensify competition in the edible oils market. Still, downside pressure was limited by a weaker ringgit and firmer edible oil prices on the Chicago market. Trading on China’s Dalian exchange also resumed after the Spring Festival break, lending some support. Looking ahead, demand from the top buyer, India, is projected to rebound in 2026 on better price competitiveness, potentially reaching 800,000 tons. The council expects palm oil prices to consolidate in the MYR 4,000–4,300 per tonne range in March.

Malaysian palm oil futures extended losses on Monday, hovering below MYR 4,090 per tonne, pressured by a firmer ringgit and weaker Chicago soyoil futures. Sentiment also turned cautious after the U.S. Supreme Court struck down President Donald Trump’s sweeping tariffs, adding uncertainty to global agricultural trade flows and weighing on rival edible oils. Export concerns also persisted as cargo surveyors estimated Malaysian palm oil shipments for February 1–20 fell between 8.9% and 12.6% from a month earlier. Still, losses were capped by expectations that China’s Dalian exchange will resume trading on Tuesday after a week-long Spring Festival holiday. In India, the top buyer, palm oil imports surged 51% in January to a four-month high, supported by a wider discount to soyoil. Meanwhile, industry data showed Malaysian inventories fell 7.7% month-on-month in the first month of 2026 while output dropped 13.8%, offering some fundamental support.