Palm Oil Dips to Near Six-Week Low

2026-09-23 04:38 By Farida Husna 1 min. read

Malaysian palm oil futures extended recent losses, hovering below MYR 4,750 per tonne and nearing a six-week low, pressured by weaker edible oils on the Dalian and Chicago exchanges and a further drop in crude oil prices on hopes for a diplomatic resolution to the U.S.-Iran conflict at the UN.

Export signals were also weak, with cargo surveyors estimating shipments fell between 12.8%–24.7% mom during September 1–20, while EU imports for the 2026/27 season plunged 26% to 0.56 million tonnes.

Still, losses were limited by stronger demand prospects in top consumer India, where August palm oil imports rose 7% from July to 782,761 tonnes, the highest since February, as refiners replenished stocks ahead of festivals.

On the supply side, the world's largest palm oil producer, Indonesia, is expected to face a shorter-than-usual wet season from November, potentially affecting crop conditions.

Meanwhile, Malaysia raised its October CPO reference price but kept the export duty unchanged at 10%.



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Palm Oil Dips to Near Six-Week Low
Malaysian palm oil futures extended recent losses, hovering below MYR 4,750 per tonne and nearing a six-week low, pressured by weaker edible oils on the Dalian and Chicago exchanges and a further drop in crude oil prices on hopes for a diplomatic resolution to the U.S.-Iran conflict at the UN. Export signals were also weak, with cargo surveyors estimating shipments fell between 12.8%–24.7% mom during September 1–20, while EU imports for the 2026/27 season plunged 26% to 0.56 million tonnes. Still, losses were limited by stronger demand prospects in top consumer India, where August palm oil imports rose 7% from July to 782,761 tonnes, the highest since February, as refiners replenished stocks ahead of festivals. On the supply side, the world's largest palm oil producer, Indonesia, is expected to face a shorter-than-usual wet season from November, potentially affecting crop conditions. Meanwhile, Malaysia raised its October CPO reference price but kept the export duty unchanged at 10%.
2026-09-23
Palm Oil Holds at Elevated Level
Malaysian palm oil futures hovered above MYR 4,850 per tonne, holding their jump since mid-August on strong demand for vegetable oils. Biofuel feedstock costs saw a broad increase from palm oil and soy oil, with persistent risks of an escalation in the Middle East and concerns of lower crude oil output from Saudi Arabia lifting demand for biofuel alternatives. On top of that, Indonesia’s B50 biodiesel mandate is set to divert more palm oil to domestic use. Likewise, imports from top consumer India rose 7% from July to 782,761 tonnes in August, the highest since February, as refiners replenished stocks ahead of the festival season. Separately, Malaysia raised its October crude palm oil reference price while keeping the export duty at 10%. In turn, the forecast of one of the most aggressive El Ninos in history continued to threaten supply from major producers Malaysia and Indonesia.
2026-09-22
Palm Oil Rebounds After Recent Weakness
Malaysian palm oil futures strengthened, hovering above MYR 4,850 per tonne and snapping recent declines. Firmer soyoils on the Chicago markets supported sentiment, along with elevated crude oil prices as geopolitical risks in the Middle East persisted. Expectations of tighter supplies also lent support, as Indonesia’s B50 biodiesel mandate is set to divert more palm oil to domestic use, while El Niño risks could curb output in both Indonesia and Malaysia. Demand prospects improved as palm oil imports by top consumer India rose 7% from July to 782,761 tonnes in August, the highest since February, as refiners replenished stocks ahead of the festival season. Separately, Malaysia raised its October crude palm oil reference price while keeping the export duty at 10%. However, gains were tempered by weakness on the Dalian exchanges and signs of sluggish exports, with cargo surveyors estimating Malaysian palm oil product shipments fell between 12.8%–24.7% mom during September 1–20.
2026-09-22