Palm Oil Picks Up to 20-Month High

2026-08-20 09:44 By Agna Gabriel 1 min. read

Palm oil extended a rally to around 4,965 ringgit per tonne, reaching the highest level since December 2024, boosted by stronger biofuel demand and growing concerns over production.

Indonesia started its ambitious B50 biodiesel programme, which is expected to divert more palm oil toward domestic fuel production and reduce export availability.

Buyers are moving to secure supplies ahead of the programme’s full implementation in October.

At the same time, dry conditions have affected plantations in Indonesia and Malaysia, raising concerns about yields.

The developing El Niño weather pattern could further worsen dryness across Southeast Asia, potentially limiting production in the world’s two largest palm oil-producing countries.

The USDA expects global palm oil inventories to fall to a nine-year low in the 2026/27 season.

Meanwhile, disruptions to sunflower oil exports from Russia and Ukraine are encouraging buyers to turn to alternative vegetable oils, adding further support to palm oil.



News Stream
Palm Oil Picks Up to 20-Month High
Palm oil extended a rally to around 4,965 ringgit per tonne, reaching the highest level since December 2024, boosted by stronger biofuel demand and growing concerns over production. Indonesia started its ambitious B50 biodiesel programme, which is expected to divert more palm oil toward domestic fuel production and reduce export availability. Buyers are moving to secure supplies ahead of the programme’s full implementation in October. At the same time, dry conditions have affected plantations in Indonesia and Malaysia, raising concerns about yields. The developing El Niño weather pattern could further worsen dryness across Southeast Asia, potentially limiting production in the world’s two largest palm oil-producing countries. The USDA expects global palm oil inventories to fall to a nine-year low in the 2026/27 season. Meanwhile, disruptions to sunflower oil exports from Russia and Ukraine are encouraging buyers to turn to alternative vegetable oils, adding further support to palm oil.
2026-08-20
Palm Oil Hovers Near 5-Month High
Malaysian palm oil futures extended their upward momentum, hovering around MYR 4,920 per tonne and holding near their highest level since early April. Firmer edible oils on the Dalian Commodity Exchange supported sentiment, while elevated crude oil prices provided additional support amid sporadic attacks in the Middle East. Meanwhile, the Malaysian Palm Oil Council projected palm oil prices to remain firm above MYR 4,600 in September, citing tightening supply and trade disruptions. However, high inventories could limit further gains, with Malaysian palm oil stocks climbing to a five-month high in July. In India, record soyoil imports expected in August could weigh on palm oil demand, as refiners may favor cheaper soyoil ahead of the festive season. Export signals were also mixed. Intertek estimated shipments fell 7.9% during August 1–15 from the same period in July, while AmSpec reported a 3.2% increase, underscoring uncertainty over near-term demand and keeping traders cautious.
2026-08-20
Palm Oil Hovers at 20-Week High
Malaysian palm oil futures extended recent strength, trading near MYR 4,900 per tonne and reaching their highest level since early April. Support came from firmer edible oils in Dalian and Chicago markets, alongside stronger crude oil prices amid continued uncertainty over shipping through the Strait of Hormuz and potential disruptions to global trade flows. Meanwhile, the Malaysian Palm Oil Council projected prices to stay firm above MYR 4,600 in September, citing tightening supply and trade disruptions. However, upside momentum was tempered by elevated inventories, with July stocks climbing to a five-month high. In India, record soyoil imports expected in August could dent palm oil demand, as refiners may favor cheaper soyoil ahead of festive-season consumption. Export signals were mixed: Intertek reported shipments down 7.9% during August 1–15 from the same period in July, while AmSpec estimated a 3.2% rise, leaving traders cautious on near-term direction.
2026-08-19