Malaysian palm oil futures fall for third consecutive session despite strong exports

Malaysian palm oil futures ended lower for the third consecutive session on Wednesday, October 28, despite a significant increase in export demand. January contracts on the Bursa Malaysia Derivatives Exchange fell by 14 ringgit, or 0.3%, to 4,687 ringgit ($1,149.90) per ton. Prices initially rose during the morning session but reversed their gains before the market closed.

According to cargo surveyors, Malaysian palm oil exports increased by 46.9–67.7% during October 1–25 compared with the same period in September. David Ng, a trader at Iceberg X Sdn Bhd, said the market was supported by strong demand ahead of India’s Diwali festive season. Meanwhile, high palm oil inventories in Malaysia continued to limit price gains.

Additional support came from a rise of more than 1% in crude oil prices following reports of an attack on a refinery in Saudi Arabia, which renewed concerns over supply risks in the Middle East. Higher crude oil prices make palm oil more attractive as a feedstock for biodiesel production. At the same time, the Malaysian ringgit strengthened by 0.32% against the US dollar, making palm oil more expensive for overseas buyers.

Competing vegetable oil markets showed mixed performance. On China’s Dalian exchange, the most actively traded soybean oil futures rose by 0.65%, while palm oil futures declined by 0.4%. On the Chicago Board of Trade (CBOT), soybean oil prices fell by 0.24%. Palm oil prices generally track movements in other vegetable oils, as they compete for market share in the global edible oils market.

Meanwhile, European Union palm oil imports remained below last year’s levels. According to European Commission data, EU countries imported 800 thsd tons of palm oil from the beginning of the 2026/27 season through October 25, down 21% from the same period last season. Soybean imports declined by 2% to 3.8 mln tons over the same period. Thus, despite stronger demand from Asian buyers, weaker EU purchases and currency movements continue to influence palm oil prices.

Tags: Malaysia, palm oil