Palm Oil Retreats on Profit Taking But Heads for weekly gain

2026-09-18 05:05 By Farida Husna 1 min. read

Malaysian palm oil futures hovered below MYR 4,910 per tonne, reversing recent gains as weakness in rival edible oils on Dalian and Chicago markets weighed on sentiment.

Prices also pulled back from a 21-month high on profit-taking, while sluggish exports added pressure, with cargo surveyors estimating September 1–15 palm oil shipments fell between 17.8% and 25.6% from August.

Crude oil also eased as extra cargoes tempered supply concerns, reducing palm’s biodiesel appeal.

Even so, futures were still on track for a weekly gain of about 1.9%, supported by expectations of tighter supplies ahead.

Indonesia’s B50 mandate is set to divert more palm oil to domestic use, while El Niño risks could curb output in both Indonesia and Malaysia.

In India, imports rose 7% in August to 782,761 tonnes, the highest since February, as refiners replenished stocks ahead of the festival season.

Separately, Malaysia raised its October crude palm oil reference price but kept the export duty unchanged at 10%.



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Palm Oil Retreats on Profit Taking But Heads for weekly gain
Malaysian palm oil futures hovered below MYR 4,910 per tonne, reversing recent gains as weakness in rival edible oils on Dalian and Chicago markets weighed on sentiment. Prices also pulled back from a 21-month high on profit-taking, while sluggish exports added pressure, with cargo surveyors estimating September 1–15 palm oil shipments fell between 17.8% and 25.6% from August. Crude oil also eased as extra cargoes tempered supply concerns, reducing palm’s biodiesel appeal. Even so, futures were still on track for a weekly gain of about 1.9%, supported by expectations of tighter supplies ahead. Indonesia’s B50 mandate is set to divert more palm oil to domestic use, while El Niño risks could curb output in both Indonesia and Malaysia. In India, imports rose 7% in August to 782,761 tonnes, the highest since February, as refiners replenished stocks ahead of the festival season. Separately, Malaysia raised its October crude palm oil reference price but kept the export duty unchanged at 10%.
2026-09-18
Palm Oil Rallies on Tighter Supply, Firm India Demand
Malaysian palm oil futures surged over 2-1/2% to around MYR 5,015 per tonne, extending recent gains as trade resumed after a holiday. A weaker ringgit and expectations of tighter supply underpinned sentiment, with Indonesia’s B50 biodiesel mandate set to divert more palm oil to domestic use and El Niño risks clouding output in Indonesia and Malaysia. Crude oil prices holding above USD 100 per barrel further boosted palm’s appeal as a biodiesel feedstock. In India, the world's largest palm oil consumer, August imports rose 7% month-on-month to 782,761 tonnes, the highest since February, as refiners replenished stocks ahead of the festival season between August and November. Separately, Malaysia raised its October crude palm oil reference price, keeping the export duty at 10%. However, weaker exports tempered upside momentum, with cargo surveyors estimating shipments fell between 17.8–25.6% in the first half of September compared with the same period in August.
2026-09-17
Palm Oil Extends Gains Ahead of Holiday
Malaysian palm oil futures rose further, trading above MYR 4,850 per tonne, lifted by a weaker ringgit and higher crude oil prices amid persistent Middle East tensions. Supply concerns also lent support, as extra dry conditions in Indonesia and Malaysia raised risks to future output. However, gains were capped by softer edible oils on the Dalian markets. Meanwhile, August data from the industry regulator continued to paint a bearish picture, with inventories up 7.5% mom to an eight-month high, while production rose 1.4% and exports fell 7.5%. Early September shipments stayed weak, with cargo surveyors noting an 11.7–17.5% drop in exports in the first 10 days from the same period in August. In India, heavy edible oil buying has congested major ports, delaying vessel unloading as storage tanks overflow, potentially curbing near-term import demand. In China, another major buyer, August economic data was mixed, with uneven demand prospects. Markets will be closed Wednesday for holidays.
2026-09-15