Palm oil falls on Thursday under pressure from the vegetable oils market

Malaysian palm oil futures declined on Thursday for the third session in the past four trading days. The benchmark October contract on the Bursa Malaysia Derivatives Exchange fell 13 ringgit, or 0.28%, to 4,651 ringgit ($1,138.56) per ton, pressured by weaker prices for competing vegetable oils.

Traders said the market remained subdued, with below-average trading activity as participants stayed cautious. On China’s Dalian Commodity Exchange, the most-active soyoil contract fell 0.32%, while palm oil futures slipped 0.01%. Chicago Board of Trade soyoil futures also declined 0.33%, adding further pressure to palm oil prices.

Weaker crude oil prices also weighed on the market. Despite escalating tensions in the Gulf region, investors shifted their focus to the continuity of supply through key shipping routes. Lower crude oil prices reduce the attractiveness of palm oil as a feedstock for biodiesel production.

At the same time, Indonesia could provide support to the market after increasing its 2026 palm-oil-based biodiesel allocation to 16.75 million kilolitres. The move follows the launch of the country’s mandatory B50 biodiesel program earlier this month, which requires a higher blending ratio of palm-based biofuel.

Reuters technical analyst Wang Tao said palm oil could retreat toward 4,524 ringgit per ton after breaking support at 4,675 ringgit, if weakness across the vegetable oils market persists.

Tags: palm oil, prices