Malaysian palm oil prices fall to nearly eight-month low amid rising inventories

Malaysian palm oil futures fell by more than 2% on Thursday, November 5, 2026, closing near their lowest level in eight months. The benchmark January contract on Bursa Malaysia Derivatives declined by 121 ringgit, or 2.69%, to 4,375 ringgit/t ($1,081.31/t). This was the lowest closing price since March 6. The market remains under pressure from concerns over further increases in palm oil inventories, higher production and declining prices of competing vegetable oils.

Malaysia’s palm oil inventories may have increased by 6.8% in October compared with September, reaching 3.75 mln tons from a record 3.51 mln tons a month earlier. Anilkumar Bagani, head of research at Sunvin Group, said market participants fear an even larger buildup in stocks, as production could exceed previous estimates. Official October production, export and inventory data from the Malaysian Palm Oil Board (MPOB) are scheduled for release on November 10.

Additional pressure could come from Indonesia, which may accelerate palm oil exports over the next two months. According to analysts, Indonesian suppliers could increase shipments to take advantage of lower export tax rates and avoid the possible introduction of an additional Danantara fee on export registrations from January 2027. Higher shipments from the world’s largest palm oil producer could intensify competition in the international market.

The downward trend was also supported by weaker prices of competing vegetable oils. On China’s Dalian Commodity Exchange, the most actively traded soybean oil contract declined by 0.74%, while palm oil futures fell by 1.64%. Meanwhile, soybean oil prices on the Chicago Board of Trade (CBOT) dropped by 0.96%. Palm oil traditionally follows price movements in other vegetable oils, as they compete for a share of global food and industrial consumption.

The Malaysian ringgit’s 0.42% appreciation against the US dollar added further pressure, making palm oil more expensive for foreign buyers. Meanwhile, Brent crude oil futures edged higher amid geopolitical uncertainty, a development that typically supports palm oil’s attractiveness as a feedstock for biodiesel production. However, this was not enough to offset the negative impact of high inventories, expectations of increased supplies and falling prices of competing vegetable oils.

Tags: Malaysia, palm oil