Malaysian Palm Oil Hits Mid-July Low on Weak Exports, Supply Pressure

Malaysian palm oil futures extended recent declines, hovering near MYR 4,600 per tonne to notch their lowest level since mid-July, pressured by weaker soyoil prices and sluggish exports. Cargo surveyors Intertek Testing Services and AmSpec Agri Malaysia reported that Malaysian palm oil product exports fell 17.1%-28.8% month-on-month in September, while inventories reached an eight-month high in August and were expected to exceed 3 million tonnes in September. Simultaneously, palm oil production in Malaysia surged 20.84% in the first 25 days of September, adding to supply pressure. Crude oil prices also eased amid signs of recovering Middle East flows, while China’s markets were closed for the Golden Week holiday. Still, a weaker ringgit limited losses. Meanwhile, palm oil imports by top buyer India are expected to hold steady in the 2026/27 marketing year after an import-duty cut, while lower vegetable-oil duties ahead of the festive season could support near-term demand.

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.

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.