Palm Oil Recovers But Faces Monthly Loss on Supply Pressure

2026-09-30 04:08 By Farida Husna 1 min. read

Malaysian palm oil futures strengthened, hovering near MYR4,650 per tonne after a recent decline that took prices to an eight-week low.

Bargain hunting and firmer Dalian edible oils provided support, while improved September economic activity in China, a major palm oil buyer, also lifted sentiment amid easing weather disruptions and stimulus hopes.

Higher global oil prices, which are on track for a third straight monthly gain, further lent support by improving the relative appeal of palm oil as a biodiesel feedstock.

In India, import duty cuts on vegetable oils ahead of the festive season improved demand prospects.

However, futures are set for their first monthly decline in three months, down about 5% on weak exports.

Cargo surveyors reported Sept. 1–25 shipments fell 15.1%–24.3% from August, while inventories climbed to an eight-month high in August and may exceed 3 million tonnes in September.

Production surged 20.84% in the first 25 days of September, underscoring supply pressure.



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Palm Oil Recovers But Faces Monthly Loss on Supply Pressure
Malaysian palm oil futures strengthened, hovering near MYR4,650 per tonne after a recent decline that took prices to an eight-week low. Bargain hunting and firmer Dalian edible oils provided support, while improved September economic activity in China, a major palm oil buyer, also lifted sentiment amid easing weather disruptions and stimulus hopes. Higher global oil prices, which are on track for a third straight monthly gain, further lent support by improving the relative appeal of palm oil as a biodiesel feedstock. In India, import duty cuts on vegetable oils ahead of the festive season improved demand prospects. However, futures are set for their first monthly decline in three months, down about 5% on weak exports. Cargo surveyors reported Sept. 1–25 shipments fell 15.1%–24.3% from August, while inventories climbed to an eight-month high in August and may exceed 3 million tonnes in September. Production surged 20.84% in the first 25 days of September, underscoring supply pressure.
2026-09-30
Palm Oil Drops to 8-Week Low as Exports Slump, Supply Rises
Malaysian palm oil futures extended recent declines, hovering below MYR 4,670 per tonne and touching an eight-week low, as weaker edible oils on the Dalian market and sluggish export demand weighed on sentiment. Cargo surveyors noted palm oil shipments fell 15.1%–24.3% in the first 25 days of September from the same period in August. Meanwhile, expectations of seasonally higher production raised concerns that end-month stocks could exceed 3 million tonnes. Industry estimates pointed to a sharp rise in output, with production up 20.84% in the first 25 days of September from August. In Indonesia, palm oil exports fell 9.87% yoy to 3.19 million tonnes in July, according to a palm oil association, adding to concerns over regional demand. Still, losses were capped by firmer crude oil prices amid persistent uncertainty over U.S.-Iran talks, supporting demand for palm oil as a biodiesel feedstock. Traders now await China’s September PMI data for clues on activity and commodity demand.
2026-09-29
Palm Oil Stays Below MYR 4,700 on Weak Demand
Malaysian palm oil futures extended losses, remaining below MYR 4,700 per tonne and hovering near a six-week low amid weakness in competing edible oils on the Dalian and Chicago markets. Bearish sentiment was reinforced by sluggish exports, with cargo surveyors estimating Malaysian palm oil shipments dipped 15.1%–24.3% in the first 25 days of September from the same period a month earlier. Meanwhile, expectations of higher Malaysian inventories and subdued Indian demand in September added pressure, although India’s recent duty cuts could support imports ahead of the festive season. Industry officials said the effects of El Niño have yet to materialise in palm oil production. Still, losses were tempered by firmer crude oil prices following President Trump’s rejection of Iran’s conditional offer to reopen the Strait of Hormuz. Meanwhile, a potentially shorter-than-usual wet season in Indonesia from November could pose risks to crop conditions.
2026-09-28