FX.co ★ Malaysian Palm Oil Hits Mid-July Low on Weak Exports, Supply Pressure

Malaysian palm oil futures extended their recent slide, trading around MYR 4,600 per tonne and touching their lowest level since mid-July, weighed down by softer soyoil prices and weak export demand. Cargo surveyors Intertek Testing Services and AmSpec Agri Malaysia indicated that exports of Malaysian palm oil products fell by 17.1%–28.8% month-on-month in September. At the same time, inventories climbed to an eight-month high in August and were projected to surpass 3 million tonnes in September.

Adding to supply-side pressure, Malaysia’s palm oil output jumped 20.84% in the first 25 days of September. Crude oil prices also eased on signs of improving supply flows from the Middle East, while trading activity was muted by the closure of Chinese markets for the Golden Week holiday. A weaker ringgit, however, helped cushion the downside in palm oil prices.

Looking ahead, palm oil imports by top buyer India are expected to remain broadly stable in the 2026/27 marketing year following an import-duty reduction. In addition, lower duties on vegetable oils ahead of the festive season could lend support to near-term demand.