Malaysian palm oil prices plunge 9% in a week, steepest drop in nearly two years

Malaysian palm oil futures recorded their steepest weekly decline since mid-December 2024 amid falling soybean oil and crude oil prices. On Friday, November 6, 2026, January contracts on Bursa Malaysia Derivatives fell by 119 ringgit, or 2.72%, to 4,258 ringgit ($1,049.54) per ton. This was the lowest closing level since March 5. Over the week, prices plunged 9.04%, marking their second consecutive weekly decline.

The main driver of the decline was weakness in competing vegetable oils, particularly soybean oil. On China’s Dalian Commodity Exchange, the most actively traded soybean oil futures fell by 1.41%, while palm oil contracts declined by 2.41%. Meanwhile, soybean oil futures on the Chicago Board of Trade (CBOT) slipped 0.53%. As palm oil competes with other vegetable oils in the global market, lower soybean oil prices increased pressure on Malaysian futures.

A further negative factor was the decline in global crude oil prices, which were also heading for a significant weekly loss. Weaker crude oil prices reduce the economic attractiveness of palm oil as a feedstock for biodiesel production. Downward pressure on energy markets intensified amid expectations of a possible easing of the conflict involving Iran, although attacks on vessels in the Middle East continued to support a geopolitical risk premium in crude oil prices.

Meanwhile, the Malaysian ringgit weakened by 0.3% against the US dollar on Friday, making palm oil slightly cheaper for foreign buyers. However, the currency movement was not enough to offset the negative impact of falling soybean oil and crude oil prices. According to David Ng, a trader at Iceberg X Sdn Bhd, weakness in the soybean oil market was the main factor behind the decline in palm oil futures.

Tags: Malaysia, palm oil