Palm Oil Nears MYR 4,800 as Profit-Taking Offsets Demand

2026-10-21 04:11 By Farida Husna 1 min. read

Malaysian palm oil futures edged lower towards MYR 4,800 per tonne as traders took profits after prices approached a four-week high.

Sentiment was also dampened by record inventories of 3.51 million tonnes in September, while seasonal production is expected to stay elevated in October after six consecutive monthly rises.

Still, losses were tempered by firmer edible oil prices on the Dalian and Chicago markets.

Exports offered support, with cargo surveyors reporting a 43.2%–58.3% mom surge in palm oil shipments during the first half of October.

Festival-related demand from India, a key importer, further lifted risk appetite.

Meanwhile, Indonesia raised its October crude palm oil reference price to USD 1,042.15 per tonne, while rising crude oil prices enhanced palm oil’s competitiveness as a biodiesel feedstock.

Traders now monitor Malaysia’s consideration of a waiver or reduction in its crude palm oil export tax, which could improve its competitiveness against Indonesian supplies.



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Palm Oil Nears MYR 4,800 as Profit-Taking Offsets Demand
Malaysian palm oil futures edged lower towards MYR 4,800 per tonne as traders took profits after prices approached a four-week high. Sentiment was also dampened by record inventories of 3.51 million tonnes in September, while seasonal production is expected to stay elevated in October after six consecutive monthly rises. Still, losses were tempered by firmer edible oil prices on the Dalian and Chicago markets. Exports offered support, with cargo surveyors reporting a 43.2%–58.3% mom surge in palm oil shipments during the first half of October. Festival-related demand from India, a key importer, further lifted risk appetite. Meanwhile, Indonesia raised its October crude palm oil reference price to USD 1,042.15 per tonne, while rising crude oil prices enhanced palm oil’s competitiveness as a biodiesel feedstock. Traders now monitor Malaysia’s consideration of a waiver or reduction in its crude palm oil export tax, which could improve its competitiveness against Indonesian supplies.
2026-10-21
Palm Oil Recovers on Strong Exports Despite Ample Supplies
Malaysian palm oil futures traded around MYR 4,800 per tonne, rebounding from recent weakness amid firmer edible oils on China’s Dalian exchange. Export strength provided further support, with cargo surveyors reporting a 43.2%–58.3% month-on-month surge in Malaysian palm oil shipments in the first half of October. Festival-driven demand from India, a key importer, also bolstered sentiment. Meanwhile, Indonesia raised its October crude palm oil reference price by 3.44% to USD 1,042.15 per tonne, while elevated crude oil prices supported palm oil’s competitiveness as a biodiesel feedstock. Supply concerns added support, as Indonesia’s planned B50 biodiesel mandate could boost domestic consumption, while El Niño-related risks threatened production. However, gains were capped by ample supply, with Malaysian palm oil inventories climbing to a record 3.51 million tonnes in September amid seasonal peak output.
2026-10-20
Palm OIl Stays at 3-Week High on Export Strength
Malaysian palm oil futures held above MYR 4,750 per tonne, hovering at a three-week peak amid firmer edible oils on China’s Dalian exchange and robust export demand. Cargo surveyors reported a 43.2%–58.3% month-on-month surge in Malaysian palm oil shipments during the first half of October, while festival-driven buying from India, the world’s largest palm oil importer, further supported sentiment. Indonesia also raised its October crude palm oil reference price by 3.44% to USD 1,042.15 per tonne. Supply concerns added support, as Indonesia’s B50 biodiesel mandate and severe El Niño conditions threatened to disrupt supply and logistics. In China, another major consumer, stronger-than-expected Q3 growth and resilient September activity bolstered demand prospects. Meanwhile, oil prices eased but remained elevated amid Middle East tensions, offering some support through the biodiesel channel. However, gains were tempered by record-high inventories of 3.51 million tonnes in September.
2026-10-19