Malaysian palm oil prices fall to one-month low amid rising inventory concerns

Malaysian palm oil futures fell to their lowest level in nearly a month on November 3, 2026, amid concerns over further inventory accumulation. On the Bursa Malaysia Derivatives Exchange, January contracts declined by 97 ringgit, or 2.09%, to 4,552 ringgit ($1,117.88) per ton. This marked the lowest closing price since October 7. The market remains under pressure from abundant supplies, which have not yet been fully offset by stronger export demand.

Malaysia’s palm oil inventories could reach a new peak by the end of October. Despite a significant recovery in exports, elevated production continues to drive stock accumulation. According to estimates from cargo surveyors, Malaysian palm oil and processed product exports increased by 45.4–73.5% in October compared with September. However, even such strong shipment growth was insufficient to fully absorb the additional supply.

The negative trend in the Malaysian market was reinforced by declining prices for competing vegetable oils. On the Dalian Commodity Exchange, soybean oil futures lost 1.38%, while palm oil contracts fell by 0.99%. Meanwhile, soybean oil futures on the Chicago Board of Trade declined by 0.18%. Palm oil traditionally follows price movements in competing vegetable oils, as these products compete for market share in the global edible oils market.

Some support for prices came from a rise of more than $1 per barrel in global crude oil prices. The oil market reacted to escalating tensions involving Iran and concerns over potential disruptions to energy supplies. Higher crude oil prices make palm oil more attractive as a biodiesel feedstock, potentially supporting demand from the biofuel sector.

Currency movements were another factor, with the Malaysian ringgit weakening by 0.17% against the US dollar, making palm oil slightly cheaper for foreign buyers. However, the impact of the weaker currency and higher crude oil prices was insufficient to offset pressure from elevated inventories. Future price movements will depend primarily on actual production volumes, export performance and changes in Malaysia’s palm oil stocks.

Tags: Malaysia, palm oil