Palm Oil Falls Sharply to Near One-Month Low

Malaysian palm oil futures tumbled around 1.5% to below MYR 4,450 per tonne, extending downside since early May and hovering near their lowest level in nearly a month. Prices came under pressure from a stronger ringgit, weaker palm olein prices on the Dalian exchange, and softer soyoil markets in Chicago. Adding to the bearish sentiment, China projected soybean imports for the 2026/27 crop year at 95.5 million metric tons, down 7.6% yoy, signaling softer demand across the broader oilseed complex as soymeal consumption weakens amid a shrinking sow herd. Meanwhile, export estimates for the first ten days of May remained mixed. AmSpec Agri Malaysia noted shipments fell 10.8%, while cargo surveyor Intertek Testing Services estimated exports rose 8.5%. Still, losses were partly limited by expectations that demand from top buyer India could rebound in May after the country’s palm oil imports plunged 27% mom to a one-year low in April, raising prospects of restocking activity.

Malaysian palm oil futures fell over 1% to trade below MYR 4,500 per tonne, pressured by weaker palm olein prices on the Dalian exchange. Sentiment was also weighed by monthly data from the industry regulator, which showed inventories rose in April for the first time in four months as production grew while exports fell. Demand concerns also lingered after India, the world’s largest palm oil buyer, reported a 27% mom drop in April imports to a one-year low. Still, losses were limited by a softer ringgit and firmer crude oil prices, as negotiations to end the conflict between the U.S. and Iran appeared increasingly fragile. On the policy front, Malaysia will raise its biodiesel mandate to B15 from B10 starting June 1, a move aimed at reducing fuel imports. Meanwhile, export data for early May was mixed. Cargo surveyor Intertek Testing Services estimated exports of Malaysian palm oil products during May 1–10 rose 8.5%, while AmSpec Agri Malaysia noted that shipments declined 10.8%.

Malaysian palm oil futures inched higher to MYR 4,515 per tonne, halting recent declines amid a weaker ringgit and firmer edible oils on the Dalian and Chicago markets. Meanwhile, crude oil prices strengthened as the U.S. and Iran failed to agree to a peace proposal drafted by Washington, boosting expectations for biodiesel demand. Higher exports further lifted sentiment, as cargo surveyor Intertek Testing Services noted that exports for May 1-10 rose 8.5% from the same period in April. On the policy front, Malaysia will roll out a B15 biodiesel mandate from June 1, up from the current B10, to curb fuel imports and spur domestic consumption. However, upside was capped by monthly data from the Malaysian Palm Oil Board showing April stocks rose 1.71% from the prior month to 2.31 million metric tonnes, with output surging 18.37% to 1.63 million tonnes. Meanwhile, demand concerns persisted as India, the world’s largest palm oil buyer, saw April imports plunge 27% mom to a one-year low.