Palm Oil Gains Despite Weak Export Momentum

2026-08-27 04:06 By Farida Husna 1 min. read

Malaysian palm oil futures traded above MYR 4,850 per tonne, rebounding from recent losses as a weaker ringgit boosted competitiveness and firmer edible oils on the Dalian exchange lent support.

Bargain buying also emerged after prices touched a one-week low.

Weather risks added to sentiment, with signs of a developing El Niño raising concerns over potential dryness and output cuts in major producers in Southeast Asia.

Meanwhile, the B50 biodiesel mandate in top supplier Indonesia is slated for full implementation on October 1, reinforcing expectations of stronger domestic consumption and tighter export supply.

However, gains were capped by softer soybean oil prices on the Chicago exchange and a further retreat in crude oil.

On the demand side, cargo surveyors estimated Malaysian palm oil product exports for August 1–25 fell 11.4%–20% from the same period in July, underscoring sluggish momentum.

Ample supply also weighed, with Malaysian inventories rising to a five-month high in July.



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Palm Oil Gains Despite Weak Export Momentum
Malaysian palm oil futures traded above MYR 4,850 per tonne, rebounding from recent losses as a weaker ringgit boosted competitiveness and firmer edible oils on the Dalian exchange lent support. Bargain buying also emerged after prices touched a one-week low. Weather risks added to sentiment, with signs of a developing El Niño raising concerns over potential dryness and output cuts in major producers in Southeast Asia. Meanwhile, the B50 biodiesel mandate in top supplier Indonesia is slated for full implementation on October 1, reinforcing expectations of stronger domestic consumption and tighter export supply. However, gains were capped by softer soybean oil prices on the Chicago exchange and a further retreat in crude oil. On the demand side, cargo surveyors estimated Malaysian palm oil product exports for August 1–25 fell 11.4%–20% from the same period in July, underscoring sluggish momentum. Ample supply also weighed, with Malaysian inventories rising to a five-month high in July.
2026-08-27
Palm Oil Retreats to One-Week Low
Malaysian palm oil futures extended losses, trading below MYR 4,900 per tonne and touching their lowest level in a week as traders returned from a holiday. Sentiment was pressured by a stronger ringgit and weaker soyoil prices on the Chicago market, while crude oil fell on renewed hopes that the Strait of Hormuz could reopen. Demand concerns also weighed, with cargo surveyor Intertek Testing Services noting that palm oil product exports for August 1–25 dipped 20% from the same period in July. Ample supplies added to the bearish tone, as Malaysian palm oil inventories climbed to a five-month high in July. Separately, exports by top grower Indonesia fell 9.2% yoy in June, according to palm oil association GAPKI. Still, losses were capped by firmer Dalian soyoil prices. Concerns that a developing El Niño could intensify dryness and curb output in Indonesia and Malaysia also provided support, along with Indonesia's planned full implementation of its B50 mandate from Oct 1.
2026-08-26
Palm Oil Pulls Back from 20-Month High Ahead of Holiday
Malaysian palm oil futures hovered below MYR 5,000 per tonne, snapping five sessions of gains and pulling back from their highest level since December 2024. Traders booked profits amid weaker soyoil prices on the Dalian and Chicago markets. Crude oil also eased ahead of an expected announcement from Washington on potential new sanctions against Iran, reducing support for competing vegetable oils. Ample supplies added further pressure, with Malaysian palm oil inventories rising to a five-month high in July. Meanwhile, cargo surveyors noted that palm oil shipments for August 1–20 fell between 5.5% and 13.2% from the same period in July. Still, losses were capped by a weaker ringgit, while buyers in top supplier Indonesia stepped up purchases ahead of the full implementation of the B50 mandate in October. Concerns that a developing El Niño could intensify dryness and curb output in Indonesia and Malaysia also provided underlying support. Markets will be closed Tuesday for a holiday.
2026-08-24