Malaysian palm oil futures were little changed on Wednesday

Palm oil prices closed higher on expectations of declining inventories, says David Ng, a trader at Iceberg X in Kuala Lumpur. Investors also expect stronger export demand in the coming weeks, he adds. He forecasts support above MYR4,200 per tonne and resistance at MYR4,350. The Bursa Malaysia derivatives contract for April delivery closed MYR7 higher at MYR4,222 ($1,073.75) per tonne.

Malaysian palm oil futures were little changed on Wednesday, trading around MYR4,215-MYR4,222 per tonne after two sessions of declines.

Price dynamics remained subdued, as a stronger ringgit and rising Chicago soybean oil prices offset support from rising Dalian vegetable oil prices.

Traders remain cautious ahead of the Malaysian Palm Oil Council’s monthly data release on February 10, which is expected to provide a new direction for the market.

The Malaysian Palm Oil Council forecasts prices to fluctuate between MYR 4,000 and MYR 4,300 in February, reflecting a balanced market environment.

On the demand side, exports supported demand, with cargo experts estimating shipments in January to have increased by 14.9% to 17.9% month-on-month.

In India, imports surged 51% to a four-month high, as a significant discount on palm oil compared to soybean oil spurred purchases by processors.

Meanwhile, Indonesia, the world’s largest producer, saw exports rise 102.23% from December, with total 2025 shipments up 9.1% year-on-year to 23.61 million tonnes.

The most active soybean oil contract on the Dalian Exchange rose 0.42%, while the palm oil contract rose 0.42%. Soybean oil prices on the Chicago Mercantile Exchange were little changed, up 0.09%.

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

According to a Reuters poll released Wednesday, Malaysian palm oil inventories are expected to break a ten-month rising trend in January as exports surged during a seasonal production slowdown.

According to inspection company AmSpec Agri Malaysia and cargo testing company Intertek Testing Services, Malaysian palm oil exports are expected to rise 14.9% to 17.9% month-on-month in January.

According to five dealers, India’s palm oil imports rose 51% in January to a four-month high, as lower prices for this tropical oil relative to competing soybean oil prompted refineries to increase purchases, while soybean oil imports were cut to a 19-month low.

According to Reuters technical analyst Wang Tao, palm oil prices could test the support level of 4,201 ringgit per tonne. A break below this level could trigger a decline to the range of 4,115 to 4,158 ringgit.

Tags: prices, palm oil