Malaysian palm oil futures closed lower on Wednesday

Malaysian palm oil futures erased earlier gains and closed lower on Wednesday, posting a second consecutive session of decline after a mixed outlook and forecasts were presented at the Price Outlook Conference (POC) in Kuala Lumpur.

Palm oil prices fell in the Asian trading session, erasing earlier gains. According to Nadia Akwida of Affin Hwang, price volatility could persist this year given the uncertainty in the agricultural sector and the global economy. Palm oil prices are expected to fluctuate around RM4,050-RM4,150 per tonne in the near term, as the festive season is expected to support demand in February, Akwida added.

The benchmark FCPO1 palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange fell 35 ringgit, or 0.85%, to 4,060 ringgit (US$1,037.83) per metric ton at the close of trading.

The most-active Dalian soybean oil contract fell 0.05%, while the palm oil contract fell 0.69%. Soybean oil prices on the Chicago Mercantile Exchange fell 0.54%.

Palm oil prices follow those of competing edible oils as it battles for share in the global vegetable oil market.

Industry analyst Dorab Mistry forecasts Malaysian palm oil futures to trade in the range of 3,800 to 4,300 ringgit (US$968 to US$1,096) per metric ton until July 2026, barring any further weather changes, as supply is ample and demand is weak.

According to the Indonesian palm oil industry association GAPKI, crude palm oil production in Indonesia is expected to grow by 2-3% this year, after increasing by 8% to 51.98 million metric tonnes in 2025.

Analyst Thomas Mielke stated at the POC conference that palm oil purchases from the largest buyers—India and China—are expected to increase between January and April this year, with inventories expected to decline during this period.

Palm oil production growth is projected to slow in 2026, with Indonesia’s production increasing by 600,000 tonnes and Malaysia’s falling to 19.7 million tonnes, according to Julian McGill, managing director of consulting firm Glenauk Economics.

According to data, Malaysian palm oil inventories fell by 7.72% in January, the first time in 11 months, driven by a sharp rise in exports despite production falling to a ten-month low.

According to independent inspection company AmSpec Agri, Malaysian palm oil exports fell by 14.3% between February 1 and 10 compared to the same period on January 1 and 10, while cargo inspection company Intertek Testing Services reported a 10.5% decline.

Tags: prices, India, Malaysia, palm oil, China