Palm Oil Rebounds

2026-09-14 03:29 By Farida Husna 1 min. read

Malaysian palm oil futures hovered above MYR 4,850 per tonne, reversing recent declines amid gains in rival edible oil markets.

Bargain hunting also emerged after prices hit a two-week low.

Firmer crude oil, underpinned by escalating Middle East hostilities, enhanced palm’s competitiveness as a biodiesel feedstock.

Supply concerns also lingered, with unusually dry conditions and reduced fertiliser use in Indonesia and Malaysia raising risks to output.

Still, upside momentum was checked by bearish monthly data from the Malaysian Palm Oil Board: August inventories climbed 7.5% to an eight-month high of 2.82?m tonnes, production edged up 1.4% to 1.82?m, and exports fell 7.5% to 1.29?m.

Meanwhile, early September shipments remained weak, with cargo surveyors reporting an 11.7–17.5% drop in exports in the first 10 days versus August.

Market caution also prevailed ahead of China’s August activity data later this week, with traders eyeing demand signals from another major palm oil buyer.



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Palm Oil Rebounds
Malaysian palm oil futures hovered above MYR 4,850 per tonne, reversing recent declines amid gains in rival edible oil markets. Bargain hunting also emerged after prices hit a two-week low. Firmer crude oil, underpinned by escalating Middle East hostilities, enhanced palm’s competitiveness as a biodiesel feedstock. Supply concerns also lingered, with unusually dry conditions and reduced fertiliser use in Indonesia and Malaysia raising risks to output. Still, upside momentum was checked by bearish monthly data from the Malaysian Palm Oil Board: August inventories climbed 7.5% to an eight-month high of 2.82?m tonnes, production edged up 1.4% to 1.82?m, and exports fell 7.5% to 1.29?m. Meanwhile, early September shipments remained weak, with cargo surveyors reporting an 11.7–17.5% drop in exports in the first 10 days versus August. Market caution also prevailed ahead of China’s August activity data later this week, with traders eyeing demand signals from another major palm oil buyer.
2026-09-14
Palm Oil Set for Third Straight Weekly Decline
Malaysian palm oil futures edged lower, hovering below MYR 4,900 per tonne and extending their recent decline amid bearish monthly data from the Malaysian Palm Oil Board. In August, inventories rose 7.48% mom to an eight-month high of 2.82 million tonnes, while exports fell 7.5% to 1.29 million tonnes. Production, meanwhile, rose 1.39% to 1.82 million tonnes, adding to concerns over ample supplies. Early September shipments also remained weak, with cargo surveyors reporting that palm oil exports fell 11.7–17.5% in the first 10 days of the month from the same period in August. Higher crude oil prices capped weakness, with Brent rising above US$100 a barrel amid Middle East uncertainty, boosting palm oil’s appeal as a biodiesel feedstock. Unusually dry conditions and low rainfall in Indonesia and Malaysia over the past six weeks, exacerbated by reduced fertiliser application, also offered some support. Contracts are heading for a third straight weekly drop, down around 0.9% so far.
2026-09-11
Palm Oil Under Pressure After Bearish MPOB Data
Malaysian palm oil futures fell around 1.3% to MYR 4,900 per tonne, extending their recent drop to a one-week low. Sentiment was pressured after Malaysian Palm Oil Board data showed inventories rose 7.48% mom in August to an eight-month high of 2.82 million tonnes. Meanwhile, exports fell 7.5% to 1.29 million tonnes, with production adding 1.39% to 1.82 million tonnes, reinforcing concerns over ample supply. Risk appetite was further weighed by weaker edible oil prices in Dalian and Chicago and a stronger ringgit. In India, heavy edible oil buying has congested major ports, delaying vessel unloading by up to 10 days as storage tanks overflow, potentially curbing near-term import demand. Still, losses were capped by elevated crude oil prices, with Brent breaching US$100 a barrel amid renewed Middle East tensions, boosting palm oil’s appeal as a biodiesel feedstock. Dry weather across Southeast Asia also fueled concerns over yields following fires and haze in Borneo and Sumatra.
2026-09-10