Palm Oil Rises Despite Heading for Monthly Decline

Malaysian palm oil futures hovered around MYR 4,020 per tonne on Friday, rebounding from a sharp drop in the prior session amid firmer soyoil prices in Dalian and Chicago markets. Demand signals also improved, as top buyer India saw palm oil imports surging 51% mom in January to a four-month high. The rebound strengthened expectations that the country's demand could recover in 2026 amid better price competitiveness, with purchases potentially reaching 800,000 tonnes. Despite the uptick, the contract is still heading for a weekly loss of about 1.7%, bringing the monthly fall to roughly 4.9%. The weakness reflects sluggish exports, even with seasonal demand from Ramadan and the upcoming Eid al-Fitr festival. Cargo surveyors noted Malaysian shipments for February 1–25 fell between 12.1% and 16.1% from the same period in January. Rising stockpiles and output also capped gains, while the Malaysian Palm Oil Council expects prices to settle around the MYR 4,000–4,300 range in March.

Malaysian palm oil futures dipped below MYR 4,050 per tonne on Thursday, extending the previous session’s subdued tone as losses in Dalian palm oil and Chicago soyoil weighed on sentiment. Prices hovered around a one-week low, pressured by a firmer ringgit and weak export performance, despite seasonal demand linked to Ramadan and the upcoming Eid al-Fitr festival. Cargo surveyors estimated that Malaysian palm oil shipments for February 1–25 dropped between 12.1% and 16.1% compared with the same period in January, reinforcing downside pressure. Still, the broader outlook remains mixed. Demand from India, the top buyer, is expected to recover in 2026 amid improved price competitiveness, with imports potentially hitting 800,000 tonnes. Meanwhile, crude oil prices held near multi-month highs amid heightened geopolitical tensions, lending some support to the edible oils complex. The Malaysian Palm Oil Council expects prices to consolidate within the MYR 4,000–4,300 per tonne range in March.

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.