Palm Oil Falls as Record Stocks Weigh on Sentiment

2026-10-15 04:29 By Farida Husna 1 min. read

Malaysian palm oil futures retreated after recent gains, slipping below MYR 4,700 per tonne amid weaker edible oils on China’s Dalian exchange and lower crude oil prices, which reduced palm oil’s appeal as a biodiesel feedstock.

Sentiment was also weighed down by renewed concerns over record-high inventories, which climbed to 3.51 million tonnes in September amid peak seasonal production, according to the Malaysian Palm Oil Board (MPOB).

Meanwhile, China’s strong September trade surplus and import growth have been supported largely by robust industrial activity and global technology demand, rather than a broad-based recovery in domestic consumption, limiting optimism over demand prospects.

However, losses were partly cushioned by signs of stronger export demand, with cargo surveyors estimating palm oil shipments rose 33.5%–37.7% in the first 10 days of October from the same period in September.

Expectations of sustained festive buying from top importer India also provided support.



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Palm Oil Falls as Record Stocks Weigh on Sentiment
Malaysian palm oil futures retreated after recent gains, slipping below MYR 4,700 per tonne amid weaker edible oils on China’s Dalian exchange and lower crude oil prices, which reduced palm oil’s appeal as a biodiesel feedstock. Sentiment was also weighed down by renewed concerns over record-high inventories, which climbed to 3.51 million tonnes in September amid peak seasonal production, according to the Malaysian Palm Oil Board (MPOB). Meanwhile, China’s strong September trade surplus and import growth have been supported largely by robust industrial activity and global technology demand, rather than a broad-based recovery in domestic consumption, limiting optimism over demand prospects. However, losses were partly cushioned by signs of stronger export demand, with cargo surveyors estimating palm oil shipments rose 33.5%–37.7% in the first 10 days of October from the same period in September. Expectations of sustained festive buying from top importer India also provided support.
2026-10-15
Palm Oil Holds Above MYR 4,700 Despite Record Stocks
Malaysian palm oil futures stayed firm above MYR 4,700 per tonne, extending their upside momentum as strength in China’s Dalian edible oils and higher crude prices boosted palm’s competitiveness in biodiesel. Export signals were also upbeat, with cargo surveyors estimating October 1–10 exports jumped 33.5%–37.7% from the same period in September, while festive buying from top buyer India and firmer trading activity in China during September added support. Yet sentiment was checked by bearish monthly data from the Malaysian Palm Oil Board. September inventories surged 24.5% mom to a record 3.51million tonnes, the sixth monthly rise in a row. Output climbed 16.5% to 2.12million tonnes, the highest since August 2015, while exports fell 12.1% to 1.12 million tonnes, marking a second month of decline. Record-high stocks, stronger output, and weaker shipments underscored supply pressure, hinting that despite firmer near-term demand, further price gains may be capped by fundamentals.
2026-10-14
Palm Oil Retreats as Weak Fundamentals Weigh
Malaysian palm oil futures eased below MYR 4,600 per tonne after recent gains, pressured by weaker edible oils on the Dalian and Chicago markets and lower crude oil prices, which reduced palm oil’s competitiveness as a biodiesel feedstock. Sentiment remained bearish after monthly data from the Malaysian Palm Oil Board showed September inventories surged 24.5% month-on-month to a record 3.51 million tonnes, extending their rise for a sixth consecutive month. Simultaneously, production climbed 16.5% to 2.12 million tonnes, its highest since August 2015, while exports fell 12.1% to 1.12 million tonnes, marking a second straight monthly decline. Investors also awaited China’s inflation and trade data for fresh signals on demand in the key consuming market. However, losses were capped by signs of stronger October shipments, with cargo surveyors estimating Malaysian palm oil product exports rose 33.5%–37.7% month-on-month in October 1–10.
2026-10-13