Palm Oil Set for Second Weekly Drop as Supply, Weak Exports Weigh

2026-10-02 04:59 By Farida Husna 1 min. read

Malaysian palm oil futures extended their decline, lingering below MYR 4,550 per tonne at their lowest level since mid-July.

For the week, futures are heading for a second straight weekly loss, down around 3.1% so far.

Sentiment was pressured by rising inventories, with August stocks reaching an eight-month high and expected to surpass 3 million tonnes in September.

Weak demand further weighed on sentiment, with cargo surveyors estimating a 17.1%-28.8% mom drop in palm oil exports for September.

Meanwhile, China’s Dalian markets were closed for a Golden Week holiday, limiting trading cues.

Still, losses were tempered by forecasts that palm oil imports by top buyer India will remain steady in the 2026/27 marketing year following an import-duty cut.

Lower edible-oil duties ahead of the festive season could also support near-term demand.

Elevated crude oil prices offered additional support amid persistent Middle East uncertainty, improving the appeal of palm oil as a biodiesel feedstock.



News Stream
Palm Oil Set for Second Weekly Drop as Supply, Weak Exports Weigh
Malaysian palm oil futures extended their decline, lingering below MYR 4,550 per tonne at their lowest level since mid-July. For the week, futures are heading for a second straight weekly loss, down around 3.1% so far. Sentiment was pressured by rising inventories, with August stocks reaching an eight-month high and expected to surpass 3 million tonnes in September. Weak demand further weighed on sentiment, with cargo surveyors estimating a 17.1%-28.8% mom drop in palm oil exports for September. Meanwhile, China’s Dalian markets were closed for a Golden Week holiday, limiting trading cues. Still, losses were tempered by forecasts that palm oil imports by top buyer India will remain steady in the 2026/27 marketing year following an import-duty cut. Lower edible-oil duties ahead of the festive season could also support near-term demand. Elevated crude oil prices offered additional support amid persistent Middle East uncertainty, improving the appeal of palm oil as a biodiesel feedstock.
2026-10-02
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.
2026-10-01
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