Palm Oil Slips to 2-Week Low as Bearish Factors Mount

2026-10-29 04:12 By Farida Husna 1 min. read

Malaysian palm oil futures fell over 1.5% to near MYR 4,600 per tonne, extending recent losses and hitting their lowest since mid-October.

A stronger ringgit weighed on sentiment, alongside weaker Dalian palm oils and Chicago soyoils.

Meanwhile, crude oil prices retreated amid renewed Middle East diplomatic efforts, reducing palm oil’s appeal as a biodiesel feedstock.

Record-high Malaysian inventories added pressure, while caution grew ahead of China’s official PMI data in the key consuming market.

Separately, EU palm oil imports for the 2026/27 season, which began in July, fell 21% yoy to 0.8 million tonnes.

Still, expectations of tighter supplies next year due to El Niño-related weather risks and stronger domestic biodiesel demand in top producer Indonesia offered some support.

Export demand also stayed firm, with cargo surveyors reporting a 46.9%–67.7% surge in shipments during October 1–25 from the same period in September, partly driven by pre-Diwali buying in top consumer India.



News Stream
Palm Oil Slips to 2-Week Low as Bearish Factors Mount
Malaysian palm oil futures fell over 1.5% to near MYR 4,600 per tonne, extending recent losses and hitting their lowest since mid-October. A stronger ringgit weighed on sentiment, alongside weaker Dalian palm oils and Chicago soyoils. Meanwhile, crude oil prices retreated amid renewed Middle East diplomatic efforts, reducing palm oil’s appeal as a biodiesel feedstock. Record-high Malaysian inventories added pressure, while caution grew ahead of China’s official PMI data in the key consuming market. Separately, EU palm oil imports for the 2026/27 season, which began in July, fell 21% yoy to 0.8 million tonnes. Still, expectations of tighter supplies next year due to El Niño-related weather risks and stronger domestic biodiesel demand in top producer Indonesia offered some support. Export demand also stayed firm, with cargo surveyors reporting a 46.9%–67.7% surge in shipments during October 1–25 from the same period in September, partly driven by pre-Diwali buying in top consumer India.
2026-10-29
Palm Oil Bounces Back After Recent Losses
Malaysian palm oil futures rebounded from recent declines, hovering above MYR 4,700 per tonne as bargain hunting emerged after prices hit a near two-week low. A weaker ringgit and firmer soyoil prices on the Dalian market also lent support, alongside a recovery in crude oil prices that improved palm oil's appeal as a biodiesel feedstock. Expectations of dwindling supplies next year due to El Niño-related weather risks and stronger domestic biodiesel demand in top producer Indonesia further boosted sentiment. On the demand side, cargo surveyors reported a 46.9%–67.7% surge in shipments during October 1–25 from the same period in September, partly supported by festive buying from India, the world's largest palm oil importer. The Malaysian Palm Oil Council expects prices to remain above MYR 4,600 in November, lifted by potential increases in Indian and Chinese purchases amid tightening supplies of competing edible oils. However, record-high Malaysian inventories continued to cap gains.
2026-10-28
Palm Oil Slips to Near Two-Week Low Despite Strong Exports
Malaysian palm oil futures extended losses, declining more than 1-1/2% to trade near MYR 4,700 per tonne and approaching a two-week low. Weakness in Dalian and Chicago edible oils weighed on sentiment, alongside record-high September stocks. Easing crude prices amid renewed Middle East diplomacy further reduced energy-market support. Still, losses were cushioned by expectations of tighter crop yields next year due to adverse weather linked to El Niño. On the demand side, cargo surveyors reported a 58.5%–78.4% surge in shipments during October 1–20 from the same period in September, supported by festive buying from India, the world's largest palm oil importer. The Malaysian Palm Oil Council expects prices to remain above MYR 4,600 in November, as India and China may increase purchases amid tightening supplies of competing oils. Further ahead, Indonesia's planned B50 biodiesel mandate is expected to boost domestic consumption and support demand in the world's largest palm oil producer.
2026-10-27