Malaysian palm oil prices edge higher despite record inventories

Malaysian palm oil futures closed slightly higher on November 10, 2026, recovering from earlier losses as better-than-expected inventory and export data supported the market. The January contract on Bursa Malaysia Derivatives gained 2 ringgit, or 0.05%, to 4,260 ringgit ($1,052.63) per ton. Prices initially declined during the session but later recovered as traders reacted to statistics released by the Malaysian Palm Oil Board (MPOB).

Malaysia’s palm oil stocks reached an all-time high of 3.62 mln tons in October, surpassing the previous record set in September. Strong production continued to drive inventory accumulation despite a recovery in exports. However, actual stocks were lower than analysts’ expectations of 3.75 mln tons. Exports also exceeded market forecasts, providing the main support for futures prices.

Declining global crude oil prices remained a bearish factor for the palm oil market. Oil futures extended their losses as concerns over Middle Eastern supply disruptions eased, particularly amid reduced risks of further military escalation involving Iran. Expectations of excess crude oil supply added further pressure. Lower petroleum prices make palm oil less competitive as a feedstock for biodiesel production.

Edible oil markets showed mixed performance across other exchanges. The most-active soybean oil contract on China’s Dalian exchange rose by 0.14%, while palm oil futures gained 0.61%. Meanwhile, soybean oil futures on the Chicago Board of Trade (CBOT) declined by 0.1%. Price movements in competing edible oils remain an important driver of the palm oil market, as they compete for a share of global trade.

The Malaysian ringgit also strengthened by 0.05% against the US dollar, making palm oil slightly more expensive for foreign buyers. Despite the positive market reaction to lower-than-expected inventories, record-high stocks continue to limit the potential for price gains. Further price movements will depend on export demand, production trends in Malaysia, developments in the crude oil market and competition from other edible oils.

Tags: Malaysia, palm oil